USD/CHF reverses sharply from 3-month lows, rises back above 0.9800
- Swiss franc among worst performers on Thursday.
- USD/CHF up more than a hundred pips from daily lows.
The USD/CHF pair rose further during the US session driven mainly by a weaker Swiss franc. Also, a correction of the US dollar against European currencies helped the pair moved to the upside.
Earlier today, the pair bottomed at 0.9715, the lowest since September 27. It fell after comments from Fed’s officials and also the FOMC minutes that pointed to a more caution and patient central bank. So far, from the lows, USD/CHF gained over a hundred pips. Recently reached 0.9844, the strongest since Monday.
The last run higher took place during Jerome Powell’s presentation and also comments from other Fed’s officials speaking in favor of a pause in the rate hike cycle. The change in market exceptions about the outlook for the Fed Funds rate weakened the greenback in the market but still, it managed to post gains versus the Swiss franc that lost ground across the board. EUR/CHF jumped from 1.1245 to 1.1315, the highest since December 24.
USD/CHF Levels to watch
To the upside the next resistance level might be seen at 0.9850, above the key to watch is the 20-day moving average at 0.9880. A daily close significantly on top would add more strength to the US dollar suggesting a recovery on top of 0.9900. On the flip side, the immediate support might be located at 0.9820, followed by 0.9785/90 (Dec 28, Jan 7 low).