USD/CHF moved to the upside during the American session amid a decline of the Swiss franc across the board. The pair climbed to 0.9597, hitting a fresh highs while other crosses of the forex market remained sideways, in minor ranges. The move of the Swissy was moderated but it took market participants by surprise.
EUR/CHF bounce from 1.0920 and just recently reached 1.0951, a fresh 1-month high. GBP/CHF has risen almost a hundred pips during the American session; it is trading at 1.2480, the strongest in three weeks.
Capped by 0.9600
The pair lost strength after approaching the 0.9600 handled that has become the immediate resistance. Yesterday and today it capped the upside. A break higher could open the doors to an extension of the recovery of the US dollar. But the greenback is still under pressure, and is likely to continue that way while below 0.9650.
The short-term outlook favors the downside. It the decline continues, below 0.9550 (Jun 29 low), the next strong support is seen above 0.9500.
Negative week and month
USD/CHF is about to post the lowest weekly close in over a year as it points to a test of 2016 lows, that are located around 0.9440/50. The decline of the US dollar pushed the pair to the downside.
During June, it lost less than a hundred pips but if conformed the bearish trend. It is the fourth monthly decline in a row and the second time in two years, to post a close under 0.9600.
