USD/CHF retreats from fresh 2 month highs

FXStreet (Mumbai) - USD/CHF seems to have wiped out almost all losses suffered from EUR/CHF peg removal and was trading very close to parity ahead of US open, with possible tests of this level soon.

USD/CHF deflates from 0.9962 levels

Currently, the USD/CHF trades higher by 0.83% at 0.9940 levels, having previously posted fresh eight-week highs at 0.9962 levels with all eyes set on 1.00. The pair remains elevated as the US dollar holds solid gains across the board. The US dollar index which measures the relative strength of the greenback against a basket of six major currencies jumped to fresh twelve year highs at 98.50 and now trades at 98.34 levels, recording a 0.72% gain on the day.

According to CFTC and Rabobank research, long USD positions maintained a consolidative tone ahead of last week’s US February payrolls report. Longs are off their recent highs but are still at very elevated levels, while CHF net shorts appear to have settled at moderately negative levels after January’s SNB’s surprise policy decision.

USD/CHF Technical Levels

To the upside, the next resistance is located at 0.9962 levels and above which it could extend gains to 1.00 levels. To the downside, immediate support might be located at 0.9900 levels and below that at 0.9888 levels.

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