USD/CHF heads towards 0.9800

FXStreet (Mumbai) - The Swiss franc surrendered its winning streak versus the US dollar in the early European session, taking USD/CHF to fresh session highs below 0.9800 as the USD bulls jumped back in to the bid after the retreat seen in the US last session.

USD/CHF off fresh 2-week lows

Currently, the USD/CHF surged by 0.32% and trades at 0.9780 levels, retreating from day’s high previously posted at 0.9797. The pair rallied this morning, largely driven by Swiss franc weakness on profit-taking after the Swiss currency hit fresh two week highs against the US dollar on Friday, moving away from parity following a rather dovish FOMC statement that showed US central bankers are no longer patient, although they will not rush to raise rates.

Moreover, a slight rebound in the greenback across the board also supports USD/CHF. The US dollar index which measures the relative strength of the greenback against a basket of six major currencies trades at 98.18, recording a 0.14% gain on the day.

Meanwhile, traders focus on US existing home sales to be released later in the day for fresh incentives on the pair.

USD/CHF Technical Levels

To the upside, the next resistance is located at 0.9800 levels and above which it could extend gains to 0.9863 levels. To the downside, immediate support might be located at 0.9733 levels and below that at 0.9700 levels.

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