USD/CHF Retreats From 1-Month Highs
The Swiss franc is rising against the US dollar, making a correction after falling during the previous three sessions. USD/CHF is trading steady around 0.9750, 40 pips below Friday’s closing price.
A weak USD favors correction
Last week the pair rose sharply, particularly since Wednesday and peaked on Friday at 0.9796, the strongest level since March 16. Today greenback is pulling back and bottomed earlier at 0.9735 on the back of a weak US dollar.
Recently the pair remained unchanged after the release of disappointing new home sales data from the US, that showed a decline of 1.5% in March, to 511K; expectations were for a 1% increase. The US dollar was unaffected in the market and continued to consolidate losses.
USD/CHF technical levels
To the upside, the next resistance is located at 0.9745 (20-hour moving average), 0.9795 (March 22 high) and 0.9845 (Mar 15 low). To the downside, immediate support might be located at 0.9730 (Apr 22 low), 0.9685 (Apr 14 & 15 high) and 0.9600 (Apr 20 low).