USD/CHF drops to test 2016 lows

The Swiss franc gained momentum against the US dollar and erased losses. USD/CHF dropped from 0.9582, the highest in two days, to test weekly (and 2016) lows located at 0.9520.

Recently it bottomed at 0.9524 and it was trading at 0.9532/36, down 20 pips for the day. Despite the recent moves, the par continues to trade within yesterday’s range, facing resistance around 0.9580 and with support above 0.9520.

Greenback is falling across the board on Friday, but markets remain mostly calm and steady compared to previous days.

Lowest weekly close since August

USD/CHF is about to post the lowest weekly close since August of last years as it continues to decline. From February highs it has fallen more than 700 pips and the bearish bias remains intact. A weekly close on top of the 20-week moving average that stands at 0.9900 could change the downside bias.