USD/CHF rises to 1-month highs near 0.9900

USD/CHF gained momentum during the American  session and broke above the 0.9850 resistance area and jumped to 0.9884, hitting the highest since June 3.

The Swiss Franc is among the worst performers in the currency market and is falling particularly against commodity currencies on a session that main stock indexes in Wall Street are headed toward record close levels. The Dow Jones gains 0.67% at 18,349 while the S&P 500 climbs 0.76% at 2,513.

USD/CHF first test at key level

The rally lost strength when it approached the 0.9890 area that during 2016 worked as a relevant area, sometimes as a strong support and other times as a resistance. At the first test USD/CHF was unable to break higher and pulled back modestly. It was trading at 0.9860/65, up 0.40% for the day and 75 pips above daily lows.

A consolidation on top of 0.9900 would open the doors for rise toward 0.9950 and above here attention would turn toward the parity level.

On the opposite direction, the Swiss franc needs a daily close under 0.9820 to remove US dollar strength.