USD/CHF hits fresh daily highs at 0.9935, consolidates modest weekly gains
- Swiss Franc and US Dollar among top performers on Friday.
- USD/CHF finds support above 0.9900, remains capped below 0.9940.
The USD/CHF pair printed a fresh daily high at 0.9935 but it was unable to extend gains and it trades at 0.9925/30, flat for the day, and up 30 pips from the level it had a week ago.
The Swiss Franc, the Yen, and the US dollar are the top performers on Friday. The USD/CHF continue to trade sideways in the 0.9900-0.9930 range following Fed official's comments and a new repo operation. Rosengren argued the US economy didn't need extra stimulus while Vice-Chair Clarida considered the rate cut as insurance against downside risks.
Overall, the pair continues to move in a bullish trend despite the Fed rate cut and the no change from the Swiss National Bank. Some better-than-expected US economic reports and a rebound in US yields supported USD/CHF over the week.
Levels to watch
Earlier during the week USD/CHF was rejected from above 0.9950 and pulled back. The four hours chart shows the pair testing the 20 simple moving average that stands around 0.9930/35. A consolidation on top would point to a test of 0.9950, a critical level that if broken would strengthen the US Dollar.
On the downside, the immediate support is the 0.9900 area and below attention would turn to 0.9885, the 20-day moving average and also the weekly low; a close under that level could signal an interim top, leaving USD/CHF vulnerable to more losses.