USD/CHF soars above 1.0050, breaks downtrend line

USD/CHF kept rising during the American session and broke above 1.0050. The pair, that earlier today rose above the parity level for the first time in almost a month, continued to rally. Recently it peaked at 1.0077, hitting the strong since April 12 and is about to test last month lows that lie at 1.0107. 

The Swiss franc, for the second day in a row, is among the weakest currencies in the market. Against the euro is trading at the lowest since October. While the US dollar remains strong supported by US bond yields. The US dollar index rose above 99.40, to the highest in two weeks. 

USD/CHF breaking key trenline

The pair climbed 200 pips since the beginning of the week. Today’s impulse pushed it above a relevant technical level around 1.0030/40: a downtrend line from December highs that capped the upside in April. So far, the US dollar is holding above that level, consolidating the break, that could open the doors to further gains. 

As mentioned above, the next resistance could be seen around 1.0100/10 (psychological/April high), followed by 1.0170/75 (March high). On the flip side, the Swiss franc could remove some bearish pressure if USD/CHF drops below 1.0030 (downtrend line); below support levels might be seen at 1.0000 and 0.9970 (20-day moving average).