USD/CHF accelerates above 0.9600, hits highest since mid-January
- CHF recovers ground against GBP and EUR but extends slide versus USD.
- DXY heads for highest close in a month.
- Key data ahead: US employment report.
The USD/CHF pair is rising for the fourth consecutive day. The rally today is being driven by a stronger US Dollar across the board. The greenback received support from the improvement in market sentiment regarding the consequences of US-China trade tensions.
US Dollar Index Futures are higher today, headed toward the first close above 90.00 in a month. The index peaked at 90.23 and then pulled back marginally.
The surprise today is that despite the rally in equity prices the Swiss Franc is also higher against the Pound and the Euro. Usually, the currency is seen as a safe haven that weakens when equity price rise sharply. A few minutes ago, Andrea Maechler, member of the Swiss National Bank board, mentioned that the Swiss franc continues to be seen as a safe haven, even after the recent depreciation.
USD/CHF Technical outlook
Ahead of the NFP, the pair continues to move with a clear upside bias. The rally gained momentum after breaking the 0.9560/65 area. Today price peaked at 0.9639, highest since January 22. Since the beginning of the week, it gained more than a hundred pips and some technical indicator are starting to show overbought conditions but so far, no clear signals of a correction are seen.
Immediate resistance is seen at 0.9640 (Apr 5 high), 0.9665 (Jan 16 & 18 high) and 0.9700. On the flip side support might lie at 0.9610, 0.9595 and 0.9570 (short-term uptrend line from last week low).
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
