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  • US dollar pulls back on Monday across the board after last week rally.
  • Swiss franc recovers strength during the American session.

The USD/CHF is falling on Monday after rising during six consecutive days. It tested the two-month high below 0.9300 earlier today but it turned to the downside falling toward 0.9250. During the American session it spiked to 0.9286 and as of writing, it is testing the daily low near the 0.9255 area.

While the Swiss franc gained momentum mover the last hours, trimming losses versus the euro and the pound, the US dollar held onto some weekend versus G10 currencies but off lows.

The greenback bottomed before the US session and then the bearish pressure somewhat alleviated. The DXY reached at 94.13, the lowest since Wednesday and then climbed back above 94.30. After rising sharply across the board last week, the US dollar is losing strength.  

The euro and the Swiss franc were not affected so far by comments from European Central Bank President Lagarde. She mentioned that the external value of the euro has an impact on inflation, and the ECB monitors price action moves in the FX market. Regarding divisions at the Governing Board, she mentioned that is “healthy” to have dissents among board members.

Technical outlook

The rally of the USD/CHF lost momentum after approaching the 0.9300 area. The short-term bias still points to the upside. Price is testing levels below the 20-SMA in 4-hour charts, showing weakens ahead. The next support is seen at 0.9245. A break lower would clear the way to more losses.

On the upside, the key resistance continues to the 0.9300 area. A daily close above would suggest a resumption of the rally. An interim resistance is seen at 0.9280.

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