USD/CHF hits fresh daily highs at 0.9935, consolidates modest weekly gains
- Swiss Franc and US Dollar among top performers on Friday.
- USD/CHF finds support above 0.9900, remains capped below 0.9940.
The USD/CHF pair printed a fresh daily high at 0.9935 but it was unable to extend gains and it trades at 0.9925/30, flat for the day, and up 30 pips from the level it had a week ago.
The Swiss Franc, the Yen, and the US dollar are the top performers on Friday. The USD/CHF continue to trade sideways in the 0.9900-0.9930 range following Fed official's comments and a new repo operation. Rosengren argued the US economy didn't need extra stimulus while Vice-Chair Clarida considered the rate cut as insurance against downside risks.
Overall, the pair continues to move in a bullish trend despite the Fed rate cut and the no change from the Swiss National Bank. Some better-than-expected US economic reports and a rebound in US yields supported USD/CHF over the week.
Levels to watch
Earlier during the week USD/CHF was rejected from above 0.9950 and pulled back. The four hours chart shows the pair testing the 20 simple moving average that stands around 0.9930/35. A consolidation on top would point to a test of 0.9950, a critical level that if broken would strengthen the US Dollar.
On the downside, the immediate support is the 0.9900 area and below attention would turn to 0.9885, the 20-day moving average and also the weekly low; a close under that level could signal an interim top, leaving USD/CHF vulnerable to more losses.
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.
