USD/CHF: Dollar bulls take profits after erasing most of the week’s gains
- USD/CHF loses most of its weekly gains in the last 24 hours.
- The 100-period SMA on the 4-hour chart is providing support.
The USD/CHF is currently trading down 0.7% at about 0.9360 since it retraced sharply lower from yesterday’s highs seen at 0.9492 losing 140 pips in the last 24 hours.
The Swissy has gained more than 160 pips over the course of the week from 0.9327 to 0.9490. The drive behind the move up being the Fed chairman Powell’s testifying in front of the Congress. In the first part of the hearing Powell’s comment where very optimistic about the economy and wage growth and saw no hindrance for rate hikes.
In the second part of the hearing on Thursday he was more cautious with his wording, saying: “we don’t see any strong evidence yet of a decisive move up in wages”. He also went further by saying that he did not see a tightening in labor market causing wages to hit “a point of acceleration”. He also commented on the recent move made by Trump on tariffs saying: “…the tariff’s approach is not the best approach, the best approach is to deal directly with the people who are directly affected…”.
Technically the USD/CHF is consolidating at the 0.9360 level sitting at the 100-period simple moving average on the 4-hour chart and less than 20 pips away from the 50% Fibonacci retracement from the February 16 to March 1 move up. A break below this level can lead to the 61.8% Fibonacci retracement at 0.9300. Further down 0.92540 should provide some support as it is the 78.6% Fibonacci retracement from the February 16 to March 1 move up. To the upside 0.9420 with the 23.6% Fibonacci retracement level along with the 200-simple moving average nearby should provide resistance. The next key resistance being the high made of Thursday at 0.9492.
USD/CHF 4hour chart
Author
FXStreet Team
FXStreet
