USD/CHF rebounds from 2-week lows, back to 0.9850
- US Dollar Index gains 0.15% but greenback still down versus commodity and EM currencies.
- USD/CHF turns positive after trading at the lowest since July 1.
The USD/CHF pair erased losses and turned positive for the day amid a stronger US Dollar across the board. The greenback printed fresh highs versus European currencies but remained in negative territory versus commodity and Emerging market currencies.
Previously USD/CHF bottomed at 0.9816, the lowest in two weeks. It rebounded and rose to 0.9850, matching Asian session highs. As of writing it is testing the 0.9850 resistance area, holding a bullish bias in the very short term.
Data released today from the US helped the greenback. The NY Empire State Index rebounded sharply, from -8 to 4.2, above the 2 expected. The greenback strengthened versus its European rivals and despite a decline in US yields.
Has it bottomed?
Today’s rebound could signal that a very short-term bottom is in place. After USD/CHF reached 0.9816 it rebounded and turned positive. A close around current levels would be positive and far from the lows, potently setting a “bullish hammer”. A slide back below 0.9825/30 would reinforce the bearish momentum, exposing daily lows and the 0.9800 area.