USD/CHF headed toward lowest close in two months

The Swiss franc is rising against the US dollar for the third day in a row. The USD/CHF pair continued to decline after making a spike above 1.0100 last Thursday after the decision of the European Central Bank and Draghi’s press conference.  

Today it broke below the parity level and bottomed on Asian hours at 0.9973. From the lows rebound and traded momentarily above 1.000, but then pulled back. Near the end of the American session, it was trading around 0.9980/85, about to post the lowest close since November 14. 

So far in January, the pair lost 200 pips on the back of a decline of the US dollar across the board. The Dollar Index (DXY) dropped today to test the 100.00 handle, reaching the lowest since early December. The index started to decline at the beginning of the year. 

USD/CHF levels to watch 

To the upside, resistance might be seen at 1.0015/20 (American session high), 1.0045/50 (Jan 13 low) and 1.0095 (Jan 20 high). On the flip side, support could be located at 0.9970 (100-day moving average), 0.9950 (Nov 27 & 28 high) and 0.9900 (psychological / Oct 26 low).