USD/CHF rises further to test monthly highs

USD/CHF adds to gains after FOMC minutes on the back of a stronger US dollar.
Pair heads for highest close since mid-August.

Matías Salord FXStreet

The USD/CHF pair printed fresh weekly highs following the release of hte FOMC minutes. The pair was already up for the day and climbed further, hitting a new high at 0.9948. Near the end of the session was hovering near the top and looking at October highs located at 0.9955. On a daily basis, USD/CHF was about to post the highest close in two months.

The US dollar rose modestly after the FOMC minutes. The document showed that some FOMC members judged that it might be necessary to raise interest rates above their longer-run level. Fed’s officials expected that further gradual increases would be consistent with a sustained expansion of economic activity. Expectations of a December rate hike remained firm, supporting higher US yields.

USD/CHF Levels to watch

The short-term momentum favors further gains in the US/CHF pair, with price recently breaking above the 0.9930 area. But the upside faces a strong resistance around 0.9950 that capped the upside during the previous two weeks. A break higher, could lead to 0.9980/85 (August highs).

If over the next sessions, the greenback failed to break and hold on top of 0.9950, a move to the downside could be seen. The move would gain strength if it breaks under 0.9850. Ahead of the Asian session, immediate support levels lie at 0.9925/30, 0.9900 and 0.9880.

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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