USD/CHF keeps rising on the back of a weak Swiss Franc, tests 0.9700
|- Swiss Franc continues to slide against US Dollar, no matter what.
- EUR/CHF very close to famous 1.2000.
The Swiss franc continues to be among the worst performers in the currency market. The USD/CHF pair is about to post the second gain in-a-row and highest close since January 11. The rally is being supported by a weak Swiss Franc.
The pair yesterday broke above 0.9640/50, a key resistance and today accelerated the move higher. Today it peaked on European hours at 0.9697 and then pulled back, finding support at 0.9650. Near the end of the session was hovering around 0.9680/85, with the bullish tone intact.
The rally so far was capped by the 0.9700 area. Above that level resistance levels might be seen at 0.9725 and 0.9750. On the flip side, 0.9645 has become the immediate support, followed by 0.9605/10 and 0.9580.
EUR/CHF shy of the 1.2000 famous
The rally of EUR/CHF is being the main driver of CHF weakness. The pair today reached 1.1990, hitting a fresh 3-year high. The euro continues to move toward the 1.2000 area for the first time since the Swiss National Bank stopped defending that area.
“In our view the money market still ignores that the road to exit for the SNB entails more steps than that of the ECB: fading SNB intervention is only a first step in the SNB’s 'normalisation' process; the next step will be for the SNB to stop characterising CHF as ‘highly valued’. We thus think the SNB will remain side lined, which should allow EUR/CHF to edge firmly into the 1.20s this year amid a continued ECB ‘normalisation’ process”, wrote analysts at Danske Bank.
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