USD/CHF: Franc hits fresh 3-week highs above 0.9570

FXStreet (Mumbai) - The US dollar got smashed by the Swiss franc in the mid-European session, knocking-off USD/CHF to fresh three week lows, as the Swiss currency strengthened supported by factory improvement among major EU economies.

USD/CHF back on the 0.95 handle

Currently, the USD/CHF trades lower by -0.87% at 0.9577 levels, hovering close to fresh three week lows posted at 0.9572 few minutes ago. The pair sank this session largely on the back of a renewed strength in the Swiss franc upbeat Euro zone PMIs readings sparked positive sentiment across the Euro area economies boosting the Swiss franc across the board.

Meanwhile, a weaker US dollar also accelerated losses in USD/CHF. The US dollar index which measures the relative strength of the greenback against a basket of six major currencies trades at 96.95 recording a -0.26% loss on the day.

Moreover, Rabobank said in a research note on Monday that “CHF net positions turned positive for the first time since May 2014. The SNB refrained from further policy stimulus last week,” also supported the Swiss currency. Traders now focus on US CPI data to be released later in the day for fresh incentives on the pair.

USD/CHF Technical Levels

To the upside, the next resistance is located at 0.9600 levels and above which it could extend gains to 0.9678 levels. To the downside, immediate support might be located at 0.9550 levels and below that at 0.9500 levels.

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