USD/CHF pares gains in tandem with USD index

The USD/CHF pair is seen moving closely in sync with the US dollar, now moving slightly off multi-month highs ahead of speeches from global central banks’ heads lined up later this week.

USD/CHF eyes parity

Currently, the USD/CHF pair trades +0.10% higher at 0.9945, easing-off session highs reached at 0.9957 in early Asia. The buoyant tone around the US dollar is seen keeping the USD/CHF pair underpinned, as the USD bulls almost price-in a Dec Fed rate hike after increased calls by FOMC members for a rate hike sooner rather than later. Meanwhile, the USD index trades +0.10% higher at 98.72, having posted fresh eight-month highs of 98.82 earlier on the day.

Later today, the major will get influenced by the persisting risk-trends and USD price-action ahead of the speech by SNB Chairman Jordan later in the NA session. Mr. Jordan is due to speak about monetary policy with negative interest rates at the University of Basel.

USD/CHF Technical Levels

To the upside, the next resistance is located at 0.9962 (multi-month highs) and above which it could extend gains to 0.9974 (mid-Fed high) and 1.0000 (parity) next. To the downside, immediate support might be located at 0.9910 (10-DMA) and below that 0.9853 (20-DMA) and from there to 0.9828 (daily S3).