USD/CHF reverses and trims gains as US dollar retreats across the board

The US dollar lost momentum across the board and pulled back sharply, erasing most of the day’s gains. USD/CHF fell more than 50 pips from daily highs and is trading back near the level it closed yesterday. 

The pair earlier climbed to 1.0128, a 1-week high, but then started to retreated. Now is trading at the lowest since the Asian session at 1.0064, marginally above yesterday’s closing price. 

The reversed in the US dollar in the market took place despite the fact that US bond yields remained steady and that equity prices in Wall Street extended gains. The Dow Jones was up more than 1%; the index broke above 21,000 for the first time ever. 

Technical outlook 

USD/CHF still has a modestly bullish bias as the price holds above the 20-day moving average, that stands at 1.0020/25. Also, it holds above a short-term uptrend line. A decline below 1.0020 could change the short-term tone. 

To the upside, the pair needs to consolidate above 1.0110, to open the doors to more gains from a technical perspective.