USD/CHF is heading towards June lows at 0.9200 and below while the dollar has been suffering some speculation around a more dovish tone from the FOMC this week. Meanwhile, the Swiss Franc is supported on the basis of Switzerland having a very high current account surplus.
USD/CHF testing support area
USD/CHF has a support at 0.9260, then 0.9180 below that. To the topside, the pair targets 0.9370 then 0.9430 with 0.9530 remaining as the key level. Karen Jones, Head of FICC Technical Analysis at Commerzbank said, rallies will need to regain the accelerated downtrend at 0.9366 in order to alleviate immediate downside pressure and signal recovery to the 55 day ma at 0.9463 in order to introduce scope to the 0.9568 March high. “Support at 0.9269, the 78.6% retracement is regarded as the last defence for the 0.9130 June low”.