USD/CHF Retreats Rejected from 0.9800

USD/CHF Retreats Rejected from 0.9800

17 May 2016, 18:18
Roberto Jacobs

USD/CHF Retreats Rejected from 0.9800

USD/CHF reached levels on top of 0.9800 for the first time since mid-March but it was rejected and pulled back, erasing all day’s gains. The pair recently bottomed at 0.9751 and it was trading at 0.9757/60, down 0.18% for the day.

The euro and particularly the Swiss franc rose across the board after the beginning of the American session. The Swiss erased practically all losses versus the euro and the pound. Greenback lost momentum and retreat, hitting fresh lows. The rally of the USD that followed US inflation data was short-lived.

USD/CHF at a key level

The area around 0.9800 could be seen as an important resistance that capped the upside during April and also late in March. A consolidation on top could trigger another bullish run. So far today, in the first attempt to break higher, greenback failed and a bearish correction started.

Price has been able to hold above 0.9750 where the 20-SMA in 4-hour charts stand, but the mentioned area remains under pressure. Support levels below could be located at 0.9725 (May 12 high), 0.9695 (May 11 low) and 0.9660 (last week low).


Share it with friends: