USD/CHF rebounds from 2-week lows, back to 0.9850

US Dollar Index gains 0.15% but greenback still down versus commodity and EM currencies.
USD/CHF turns positive after trading at the lowest since July 1.

Matías Salord FXStreet

The USD/CHF pair erased losses and turned positive for the day amid a stronger US Dollar across the board. The greenback printed fresh highs versus European currencies but remained in negative territory versus commodity and Emerging market currencies.

Previously USD/CHF bottomed at 0.9816, the lowest in two weeks. It rebounded and rose to 0.9850, matching Asian session highs. As of writing it is testing the 0.9850 resistance area, holding a bullish bias in the very short term.

Data released today from the US helped the greenback. The NY Empire State Index rebounded sharply, from -8 to 4.2, above the 2 expected. The greenback strengthened versus its European rivals and despite a decline in US yields.

Has it bottomed?

Today’s rebound could signal that a very short-term bottom is in place. After USD/CHF reached 0.9816 it rebounded and turned positive. A close around current levels would be positive and far from the lows, potently setting a “bullish hammer”. A slide back below 0.9825/30 would reinforce the bearish momentum, exposing daily lows and the 0.9800 area.

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.

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