USD/CHF climbs back toward weekly highs near 0.9170 after short-lived correction
- US dollar holds onto weekly gains across the board.
- USD/CHF posts best weekly results in a month, still sideways.
The USD/CHF resumed the upside during the American session and climbed toward the 0.9170 area. It continues to hold a bullish tone following a short-lived retreat that found support around 0.9130. The US dollar is posting a weekly gain of more than a hundred pips.
The greenback is about to end the week higher across the board and with a positive tone, supported by risk aversion and also by higher US yields.
The Swiss franc failed to benefit versus the greenback despite the decline in equity prices and ahead of US elections, but it rose versus the euro. The common currency weakened following the European Central Bank meeting that also contributes to the bullish pressure in USD/CHF.
From a technical perspective, the recent rally in USD/CHF points to more gains, but on a wider view, it continues to move sideways supported by the 0.9000 area and with resistance initially below 0.9200 and then 0.9300. Also, the 20-week moving average at 0.9210 could be seen as a relevant technical level.
Technical indicators are starting to favor the US dollar. Next week, it will be critical to see if the pair manages to break and hold above 0.9170 that would point to more gains or if it fails again, suggesting another visit to 0.9040 and 0.9000.
Levels to watch
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.
