USD/CHF: upside to parity on the cards towards 1.0328 2015 highs

USD/CHF is testing the 0.9920 support zone on supply from a strong rally from the mid point of the 0.98 handle, clearing stops out on the way up.

USD/CHF has been in a rising channel since July 5th's recovery from below 0.9700 and is making fresh highs at this point at 0.9929. Consumer confidence has picked up and housing data was better than expected, albeit we had a miss in services PMI's for July. The key event taking place is the Fed this week and markets are not expecting a hike but will be looking for clues for when the Fed might be hiking rates based on an improved Q2 that could be leading to a better looking H2, pointing to a hawkish outcome. 

FOMC meeting: yes, it will be hawkish; no, it won't matter

USD/CHF levels

Analysts at Commerzbank suggested that scope remains further gains to short term resistance at .9990/1.00. "This is the 61.8% retracement of the move down from November 2015 and will act as the break point to the 1.0128 March 2015 peak and the 1.0295/1.0328 2015 highs. Initial resistance is the .9956 30th May high. For now we maintain an immediate upside bias above .9764. Initial support is offered by the 55 day ma at .9779. Below .9685 will refocus attention back to the .9522 recent low."