USD/CHF rebounds sharply on US dollar strength, tests 0.9520

US dollar gains momentum after US data and Powell’s initial testimony.
US data: retail sales surpassed expectations, while industrial production rose below consensus in May.

Matías Salord FXStreet

The USD/CHF pair rebounded from two-day lows amid a recovery of the US dollar across the board and rose back above 0.9500. Recently it printed a fresh daily high at 0.9521 and remains near the top, with a strong bullish momentum.

Earlier on Tuesday, USD/CHF bottomed at 0.9462. From the low, it gained so far more than 50 pips. The rebound was boosted by a stronger US dollar, particularly against majors and more recently, it is also rising versus emerging market currencies as Wall Street reverses to the downside.

The rally of the greenback received a boost from US Retail Sales data that posted in May the biggest monthly gain on record. Later, Fed Chair Powell mentioned that if the market continues to function, the central bank will slow its corporate bond-buying program.

Market sentiment also deteriorated after the latest Covid-19 numbers from the US (particularly Florida) and after the Beijing City government increase their emergency response. The Chinese city will shut all schools, Bloomberg reported.

The deterioration in risk sentiment did not alter USD/CHF upside. The Swiss franc gained momentum against its European rivals but held under pressure versus the US dollar, the main winner of the day so far.

Levels to watch

The USD/CHF is testing the resistance around 0.9520/25; above attention would turn to the 0.9550/55 area, a critical resistance that if broken, should reinforce the bullish bias. On the flip side, now 0.9495 is the immediate support, followed by 0.9475 (June 15 low) and then 0.9450.

USD/CHF

Overview
Today last price	0.9514
Today Daily Change	0.0023
Today Daily Change %	0.24
Today daily open	0.9491

Trends
Daily SMA20	0.9605
Daily SMA50	0.9662
Daily SMA100	0.9669
Daily SMA200	0.9765

Levels
Previous Daily High	0.9547
Previous Daily Low	0.948
Previous Weekly High	0.9639
Previous Weekly Low	0.9376
Previous Monthly High	0.9784
Previous Monthly Low	0.9589
Daily Fibonacci 38.2%	0.9506
Daily Fibonacci 61.8%	0.9521
Daily Pivot Point S1	0.9465
Daily Pivot Point S2	0.9439
Daily Pivot Point S3	0.9398
Daily Pivot Point R1	0.9532
Daily Pivot Point R2	0.9573
Daily Pivot Point R3	0.9599

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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