USD/CHF climbs above 0.9600 as the rally goes on despite US-China tensions
- CHF among worst performers despite trade war fears.
- USD/CHF erased losses and heads for the highest close since mid-January.
The USD/CHF pair is about to post the highest daily close since January 22. The greenback erased losses during the US session and even reached levels on top of 0.9600 for the first time in 10 weeks.
Earlier today the pair was in negative territory at 0.9585 and dropped to 0.9550 after China announced tariffs for 106 US products for a value of $50bn in imports, in response to US measures. Markets were hit and equity prices dropped sharply. During the American session, Wall Street rebounded. Near the end of the session, the Dow Jones was up 0.65%, after rising more than 600 points from the low.
As equity prices started to recover USD/CHF bounced to the upside and erased losses. During the last hours, it moved at a slow pace, always to the upside. It rose above 0.9600 and peaked at 0.9608. As of writing, was trading around 0.9600/05, about to post the third-day in-a-row and the sixth out of the last seven trading days.
USD/CHF Levels to watch
If the pair consolidates above 0.9600, the potential target might be located at 0.9630/35, above resistance levels are seen at 0.9665 (Jan 16 & 17 high) and 0.9695 (Jan 2 low). It continues to move within a bullish channel. On the flip side, support is now seen at 0.9575, followed by 0.9520 (weekly low) and 0.9480.
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.
