USD/CHF fails to rise back above 0.9800

FXStreet (Córdoba) - USD/CHF dropped sharply yesterday but during the American session trimmed losses. Today on Asian hours rose further but it peaked below 0.9800 and turned back to the downside erasing gains.

The pair retreated further despite US economic data and bottomed at 0.9736, slightly above daily lows located at 0.9728. Currently it trades at 0.9760, around the same level it closed yesterday.

More corrective moves ahead?

On Wednesday the pair had the worst day in weeks. It dropped to 0.9672 but it was rejected from below 0.9700 and price also held above the daily 20-SMA. The Swiss franc lost strength today, but the recovery of the pair found resistance at 0.9800.

If price falls back below 0.9700, it could open the doors for another bearish run while if it rises back above 0.9830, greenback could resume the uptrend that remains in place since mid-June.

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