USD/CHF hits 6-day lows, finds support at 0.9735

The Swiss franc is rising against the US dollar on Tuesday and is at the highest level since last Thursday. USD/CHF accelerated to the downside today, extending the bearish correction that started after the initial reaction to the NFP report. 

The pair opened the day near the 0.9800 handle and recently bottomed at 0.9734, the lowest in six days. At the moment of writing, stands at 0.9745, holding a bearish tone. A weak US dollar drove the pair to the downside. The greenback dropped across the board on the back of a recovery in US bonds.

Levels to watch 

USD/CHF continues its decline after reaching on Friday after the NFP at 0.9835, the highest levels in four months. The pair was rejected from above 0.9800 and after taking a pause yesterday resumed the decline. Today is having the worst day in a month. 

If the slide continues under daily lows, support levels might be located at 0.9710 (Oct 3 low), 0.9695 (20-day moving average) and 0.9665/70 (Sep 29 low). To the upside, resistance might be seen at 0.9770 (Oct 6 low), 0.9805/10 (Oct 9 high) and 0.9835 (Oct 6 high).

EUR/CHF holding near 1.1500 despite Catalonia 

The euro continues to be unaffected by Spain’s political tensions. The Catalan leader Carles Puigdemont, will address the regional parliament in about an hour. The Spanish government warned Puigdemont not to make any unilateral independence declaration.

EUR/CHF hit earlier today 1.1523, a 2-week high before easing toward 1.1500. The pair is marginally higher on Tuesday, gaining for the third session in-a-row.