USD/CHF soars and climbs to 0.9900
- USD/CHF extends gains despite the recovery in US stocks.
- Price rose back above 0.9900, recovering important technical levels.
The USD/CHF pair bounced sharply and climbed to the highest level in six days. Earlier today was testing monthly lows. The move to the upside took place amid a rally of the US dollar.
The pair traded below 0.9800 but like what happened last week, bounced to the upside. The move higher today was steeper, and as of writing, USD/CHF stands at 0.9906, the highest of the day.
From the lows, it gained more than a hundred pips and now the short-term technical outlook points to more strength. The Swiss franc was rejected again from below 0.9800, giving a potential signal of a reversal.
The greenback continues to rise against European currencies in Wall Street despite the recovery in equity prices. After a negative opening, major US stock indexes are in positive territory. The US Dollar Index is up 0.90%, near 97.00 after falling during the Asian session to 95.65.
USD/CHF eyes 20-day SMA
The pair climbed back above the 0.9850/55 zone that again could be considered a support area and also rose on top of 0.9900. The next key level is the 20-day moving average at 0.9910. A daily close significantly above could point to more gains and a potential test of 0.9950/60.
On the flip side, a slide below 0.9850 could increase the bearish pressure while a daily close under 0.9800 is needed to signal more losses ahead.