USD/CHF coiling around parity, still unable to break 2018 high
|- The USD/CHF is currently unable to continue the rally as European stock indices and the technical configuration keeps a lid on the pair.
- The USD/CHF appreciated almost 900 pips in recent weeks on the back of US Dollar strength lead by expectations of more rate hikes by the Fed in 2018.
The USD/CHF pair is trading at around 1.0000 virtually unchanged on Friday as the market is in consolidation mode for the 11th day in a row.
The Swiss franc found in an intraday ceiling in Asia at 1.0018 and then fell below the parity level in early Europe and is now coiling around 1.0000 at the time of writing.
The USD/CHF is in its 11th day of consolidation after the strong bullish move of the last weeks. A strong US dollar demand is behind the rally as the 10-year US Treasury yield benchmark is also breaking above multi-year highs.
Keeping a lid on the rally is the technical double top with the high of one year ago at 1.0038 and the European stock indices which are also trading mainly sideways in tandem with USD/CHF. In fact, the Swiss franc is considered by many a safe-haven currency in times of uncertainties. Some analysts argue that stocks in Europe are struggling to make any significant breakout as Italian political uncertainties keep market participants somewhat cautious.
USD/CHF daily chart
The trend is bullish and resistance is seen at the 1.0059 high of 2018 followed by 1.0100 and 1.0200 psychological figures. On the other hand, the bears should expect support at 0.9957 swing low and then at the 0.9900 figure. The Swissy is trading above its 50, 100 and 200-period simple moving averages on the daily chart suggesting a strong upward momentum.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.