USD/CHF losses momentum near 0.9700, retreats from five-day highs
|- Swiss franc drops against its main rivals, SNB intervention?
- USD/CHF holds bullish bias in the short-term but momentum eases.
The USD/CHF rose to 0.9686 after the beginning of the American session, reaching the highest level since last Thursday and then pulled back. As of writing trades at 0.9635, near the session low.
The retreat from the peak took place amid a decline of the US dollar across the board. The greenback rose to multi-day highs but over the last hours turned to the downside, erasing gains. The DXY climbed toward 100.00 and now is back at 99.25, close to Monday’s close.
The Swiss franc holds a negative tone against its main European rivals. EUR/CHF rose back above 1.0600 and spiked to 1.0620, the highest since Friday. The area around 1.0550/60 has become a strong support.
“The Swiss franc maintains its safe-haven appeal with EURCHF grinding steadily lower in recent weeks. Thus far, the cross has held above 1.05, however, amid signs that the SNB is actively working to prevent runaway CHF appreciation. The panic phase of the latest wave of risk aversion may be complete. Sentiment is likely to remain fragile for some time, however, as global growth falls off the cliff. This suggests CHF strength is unlikely to reverse course any time soon”, explained analysts at Rabobank.
USD/CHF Technical levels
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