USD/CHF retreats to 0.9577 after being unable to break key resistance

Spot retreats after being unable to break key resistance.
Trends still point to the upside but risk of a more deep correction rise.

Matías Salord FXStreet

The USD/CHF pair is falling on Monday, retreating after testing during several sessions the 0.9640 resistance area. The greenback failed to break higher and dropped back below 0.9600. It bottomed at 0.9577, the lowest since Thursday. During the last hours, it has been moving in a range, consolidating daily losses below 0.9600.

The US Dollar lost further ground during the American session as US yields turned lower. US Dollar Index Futures bottomed at 89.05, slightly above last week lows. The greenback failed to receive support from US data: retail sales rose in March 0.6% above the 0.4% and rebounded after falling during the previous three months.

The Swiss franc is posting modest losses against its European rivals. It reached fresh monthly lows versus the Pound and against the Euro holds close to last week lows.

Technical levels

The chart still points to the upside but USD/CHF needs to break above 0.9640/50 in order to open the doors to further gains. In the short-term, a decline below the uptrend from February (0.9560) might signal an extension of the correction.

In case of a rebound, resistance levels might be located at 0.9610, followed by 0.9635/40 (Apr 13 & 16 high). To the downside, supports could be seen at 0.9575 (Apr 16 low), 0.9555 (Apr 11 low) and 0.9530.

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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