USD/CHF recovery attempt stalls below 0.9650
|- USD/CHF recovery attempt from 0.9575, capped below 0.9650.
- The dollar fails to take advantage of CHF weakness after worse-than-expected Swiss GDP.
- The greenback is hovering above key support at 0.9590.
The US dollar reversal from 0.9700 area found support on Tuesday at 0.9575, two-months low, before bouncing back above 0.9600. USD recovery, however, has been limited below 0.9650, with the pair nearly unchanged on the daily chart and both currencies weighed amid a positive market mood.
The USD fails to take advantage of a weak CHF
The greenback opened the day on a bid tone, advancing to session highs at 0.9648 on the back of weaker than expected Swiss Gross Domestic Product data. Swiss economy contracted by 2.6% in the first quarter, a 1.6% deceleration year-on-year, well beyond the market expectations of a 0.9% economic decline.
The US dollar, however, lacked follow-through and returned to levels right above 0.9600 during the US session. Better than expected US ADP employment figures and the ISM non-manufacturing PMI have brightened the market mood, which reflected on positive equity markets and higher demand from riskier assets like the EUR, GBP, AUD or NZD.
USD/CHF hovering above important support at 0.9590
The pair is trading at a short distance from 0.9590 (April 14, May 1 low). A clear breach of this level might increase bearish pressure towards March 27 low at 0.9500 and March 16 low at 0.9390. On the upside, immediate resistance lies at 0.9640/50 (May 21, 28 lows), then probably at the former trendline support, around 0.9680 and 0.9735 (May 25 high).
USD/CHF key levels to watch
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.