USD/CHF extends gains above 0.9950, to 2-week highs

The US dollar gained momentum during the American session and rose across the board. USD/CHF broke above 0.9950 and climbed to 0.9980, hitting the highest level since April 21. 

Also a weak CHF favored the upside. The Swiss franc is among the worst performers in the market following the French elections. EUR/CHF reached levels above 1.0900 for the first time since October of last year. 

From monthly lows to weekly highs  

On Friday, USD/CHF bottomed at 0.9857, the lowest level in almost two months. Now the pair is trading at weekly highs. It is rising almost a hundred pips on Monday, posting the highest daily gain in months. 

Next resistance 

Price has risen above the 20-day moving average for the first time since mid-April. If the US dollar manages to consolidate around current levels it could gain support to extend the upside. 

The next relevant resistance level might be seen at the parity level and on top at 1.0030/40, where a downtrend line from December highs is located. A break of the mentioned line would strengthen the bullish case for the US dollar. 

On the downside, failure to hold above 0.9970 (20-day MA) could signal some correction ahead. Below 0.9890 it could drop to test the 0.9850 key support level.