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USD/CHF 0.9670 lower in European session

FXstreet.com (London) - The pair has been leading the market of late and had gapped out on the charts on Friday to break the 0.9700 level on a broad based dollar rally reaching a high of 0.9717 yesterday. As mentioned, gaps tend to get filled, and the pair retraced those gains back down to a low 0.9647 overnight.

The pair had breached 0.9700 three times over the course of yesterday’s global markets, but this morning opens lower around the pivot point 0.9670. In a dollar positive environment and with indicators offering strongly bullish signals 0.9720 and 0.9770 are in focus. Support comes 0.9650 0.9610 and 0.9570.

Tomos Rhys Edwards, Bank of America Merrill Lynch Global expects the CHF to weaken further, consistent with the overall increase in global risk appetite and recent improvements in the Eurozone periphery.

The market is looking out for when the FED minutes come on Wednesday. The market has been pricing in comments with regards to ending the QE cycle by buying the dollar in advance. Any comments towards those tones diminishing for an ending of the cycle could offer a big set back to the pair.

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