USD/CHF finds resistance at 0.9400 and retreats, still holds a bullish tone

• Pair moving between 0.9300 and 0.9400. 
• Swiss franc failed to benefit significantly from risk aversion. 

The USD/CHF pair continues to move with an upside bias supported by a stronger US dollar the board on the back of Wall Street sell-off. The Swiss franc appreciated only momentarily during yesterday’s crash and today erased all those gains. The risk aversion scenario did not favor the CHF like other times. 

Yesterday the pair dropped from 0.9375 and found support above 0.9300. Today after a consolidation period during the Asian session, started to move to the upside. On American hours reached at 0.9396, the highest level in a week. 

Equity prices in Wall Street were falling modestly but moved far from the lows. Dow Jones futures bottomed near 23,100 and were at 24,300. The improvement in the tone favored a consolidation in the currency market and weakened the demand for the US dollar and US bonds. 

Levels to watch 

USD/CHF tested level near 0.9400 but failed to break higher. Still, it remains near that area, holding a bullish tone. A break higher could open the doors to more gains. The next target might be seen at 0.9425 and then, the area below 0.9450. 

If the US dollar fails to break above 0.9400 in the very short-term a pullback seems likely. Supports could lie at 0.9330 and then, the key 0.9300.