USD/CHF takes-out Tuesday’s high, what next?

The USD/CHF pair finally ended its overnight consolidative phase and broke higher in early Europe, sending the prices back towards yesterday’s highs amid renewed strength in the greenback across the board.

USD/CHF trades above all major DMAs

Currently, the USD/CHF pair trades 0.08% higher at fresh session highs of 0.9835, having surpassed previous high posted at 0.9932. The major ran through fresh bids at 0.9910 and bounced higher, in an attempt to reach parity on the back of some fresh buying interest seen around the greenback against its major peers. The USD index advances +0.14% to trade near session tops of 97.37.

The USD bulls continue to ride higher on upbeat US consumer confidence and new home sales data-led wave, while markets prefer to hold the US currency, heading towards the FOMC decision due later in the NA session. Meanwhile, the Swiss franc remained little affected by upbeat Swiss UBS consumption indicator, which rose to 1.34 points versus 1.24 previous.

USD/CHF Technical Levels

To the upside, the next resistance is located at 0.9950 (psychological levels) and above which it could extend gains to 0.1000 (parity). To the downside, immediate support might be located at 0.9875 (100-DMA) and below that 0.9858 (200-DMA).