6 May 2016
USD/CHF rises above 0.9700
The US dollar continued to rise against the Swiss franc and printed fresh weekly highs despite weak employment number from the US.
USD/CHF dropped quickly to 0.9648 after the release of the NFP but then bounced to the upside and peaked after Wall Street opening bell at 0.9732, the highest level since April 28. It was trading near the highs holding a bullish tone.
Earlier during the week it bottomed at 0.9442, since then it has risen almost 300 pips. The area around 0.9500 offered support and from there it is recovering. If it continues to rise the next relevant resistance area could be seen around 0.9790 - 0.9800, where April highs are located.
Price is back above the 20-day moving average that stands at 0.9655, a move below would remove momentum to the US dollar exposing 0.9580 and below here the mentioned 0.9500 zone.
Strong weekly bounce
The pair is about to end the week with a 130 pips gain, after falling sharply during the previous seven days. Greenback made a comeback in the market, removing weakness despite the decline in expectation of a Federal Reserve rate hike in June.
So far the recent rally could be characterized as a correction or a continuation of a consolidation range but a break above 0.9800 could give more clear bullish signals.
USD/CHF dropped quickly to 0.9648 after the release of the NFP but then bounced to the upside and peaked after Wall Street opening bell at 0.9732, the highest level since April 28. It was trading near the highs holding a bullish tone.
Earlier during the week it bottomed at 0.9442, since then it has risen almost 300 pips. The area around 0.9500 offered support and from there it is recovering. If it continues to rise the next relevant resistance area could be seen around 0.9790 - 0.9800, where April highs are located.
Price is back above the 20-day moving average that stands at 0.9655, a move below would remove momentum to the US dollar exposing 0.9580 and below here the mentioned 0.9500 zone.
Strong weekly bounce
The pair is about to end the week with a 130 pips gain, after falling sharply during the previous seven days. Greenback made a comeback in the market, removing weakness despite the decline in expectation of a Federal Reserve rate hike in June.
So far the recent rally could be characterized as a correction or a continuation of a consolidation range but a break above 0.9800 could give more clear bullish signals.