USD/CHF at Fresh Weekly Highs, above the 20-WMA

USD/CHF at Fresh Weekly Highs, above the 20-WMA

20 May 2016, 18:28
Roberto Jacobs

USD/CHF at Fresh Weekly Highs, above the 20-WMA

The US dollar pulled back modestly versus the Swiss franc but then bounced to the upside and reached at 0.9926 a fresh 2-month high. USD/CHF gained momentum after breaking above 0.9800 on Wednesday and is consolidating above important technical levels.

Among majors, the Swiss franc is the worst performer of the week while greenback is the best, strengthened by the FOMC minutes that boosted expectations of a June rate hike from the Federal Reserve.

USD/CHF and the 20-WMA

Price is rising on Friday for the sixth day in a row and from May lows, it has risen almost 500 pips. The pair is about to post the third consecutive weekly gain. From a technical perspective, it has broken two relevant levels during the last five days.

The first is the 0.9780 - 0.9800 area, that capped the decline back in March and April. Also, it rose above the 20-week moving average for the first time since January. The mentioned average that currently stands at 0.9830 could become now an important support for the US dollar.


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