USD/CHF rises for the third consecutive day, still down for the week and under 1.0100

  • US Dollar gains modestly versus Swiss franc after moving of highs. 
  • The recovery from May’s low in USD/CHF limited while below 1.0100. 

The USD/CHF pair is up on Thursday for the third-day in-a-row but it moved off highs and so far it has been unable to hold on top of the 1.0100 handle. The move to the upside took place amid a rally of the US dollar across the board. Considering European majors, the Swiss franc is among the top performers, even despite the decline of other safe haven assets like the Yen and Gold. 

Positive US housing data and building permits in April, and the advance in Philadelphia Fed business index, jointly with the strong labor markets, eased yesterday’s concerns about the health of the US economy, after both US industrial production and retail unexpectedly declined in March”, wrote BBVA analysts.  The data helped the US dollar. The DXY is up almost 0.3% having the best performance in more than a week. It is back into positive territory for the month. On Friday, economic data to be released includes EZ inflation and US Consumer Sentiment. 

Levels to watch 

The USD/CHF peaked at 1.0106 the highest levels since Monday and then pulled back. It is hovering slightly above 1.0090. If the pair breaks and holds on top of 1.0100 it would signal more gains ahead. Above the next resistance is seen at 1.0130 and 1.0160. 

To the downside, the immediate support is located at 1.0090, followed by 1.0065 and then the critical 1.0050 (weekly low). The short-term bias will likely prevail as long as price holds below 1.0130. 

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