USD/CHF Surrenders Gains, Near 0.9550

USD/CHF Surrenders Gains, Near 0.9550

7 April 2016, 11:48
Roberto Jacobs

USD/CHF Surrenders Gains, Near 0.9550

Sudden buying interest in the greenback has lifted USD/CHF to test highs in the vicinity of 0.9580, albeit losing vigour soon afterwards.

USD/CHF still relegated to 2016 lows

Despite the brief bullish attempt, the pair remains confined to the area of YTD lows in the mid-0.9500s, levels last seen in October 2015. The persistent weakness around the greenback is the exclusive driver behind the abrupt drop from March tops in the 0.9800 neighbourhood as market participants continue to adjust to the dovish bias from the FOMC.

Data wise today, US Initial Claims are the only release ahead of the speech by Chairwoman J.Yellen and Kansas City Fed’s E.George.

USD/CHF key levels

The pair is now advancing 0.01% at 0.9557 facing the next resistance at 0.9698 (20-day sma) followed by 0.9791 (high Mar.25) and finally 0.9825 (200-day sma). On the other hand, a breakdown of 0.9547 (2016 low Apr.1) would aim for 0.9523 (monthly low Sep.18 2015) and then 0.9473 (monthly low Oct.15 2015).

(Market News Provided by FXstreet)

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