USD/CHF testing the upper band of the daily channel
|The USD/CHF has been confined in a narrow 30-pip channel on Monday and is now making an attempt to break above this channel. At the moment the pair is at 0.9985, where it closed the previous week.
The upsurge seen in the US Dollar Index in the past couple of hours seems to be the source of this recent rise in the USD/CHF. At the moment, DXY is at 100.20, recording a %0.05 daily increase. The positive mood surrounding the major US equity indices and Chicago Fed President Charles Evans' comments have provided extra legs for the USD.
In an interview with Fox Business, Charles Evans suggested that the inflation could start rising amid fiscal policy and added that if the economy "really" picks up, four rate hikes could be possible.
Following a meeting of G-20 finance minister and central bankers, President Thomas Jordan of SNB reiterated his view on the CHF by saying that they suffer from an overvalued franc and must try to contain this overvaluation.
Technical outlook
To the upside, resistances are aligned at 1.000 (psychological level), 1.0060 (20-DMA) and 1.0090 (100-DMA). Below the daily low at 0.9960, 200-DMA at 0.9940 is forming a tough dynamic support. In case this support is violated, 0.9860 (Jan. 1 low) could be the next target.
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