- ºUSD/CHF trims half of Wednesday’s gains, drops below 0.9100.
- Swiss franc outperforms; EUR/CHF reverses sharply from weekly highs.
The Swiss franc is among the top performers on Thursday among majors. The USD/CHF peaked during the Asian session at 0.9161, the highest level since August 12 and then turned to the downside. Since then, it has fallen almost a hundred pips.
The pair printed a fresh daily high at 0.9078, and as of writing, it trades at 0.9082, with the bearish pressure intact, down 60 pips for the day. The US dollar eared half of Wednesday’s gains.
The sharp reversal in USD/CHF started with a stronger Swiss franc across the board and with the euro lagging. The EUR/CHF pair reversed sharply above 1.0850 (two-month highs) and tumbled to 1.0765.
On American hours, the US Dollar lost momentum and weakened further USD/CHF. The DXY pulled back below 93.00, erasing daily gains. The greenback is still trading above the level it had before the FOMC minutes, but the momentum is fading.
Levels to watch
On the flip side, below 0.9080 the next support seen in USD/CHF stands at 0.9065 followed by 0.9050 (Aug 17 low) and then 0.9035. On the upside, now 0.9110 is the immediate resistance. Above the US dollar could gain strength for a rise to the 0.9140 area that protects the weekly high at the 0.9160 zone.
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