USD/CHF hits new highs above 0.9500 as USD gains momentum

The US Dollar reversed its trend against European currencies. It trimmed losses versus the pound and the euro and printed fresh highs against the Swiss franc. USD/CHF reached at 0.9505 the highest level since Friday. 

A combination of a USD reversal and a weak Swissy boosted the pair that accelerated the bullish correction of the USD/CHF. Still trades significantly lower from the level it had a week ago. The Swiss franc is the worst performer among European currencies. 

USD/CHF on corrective-mode

The pair rebounded from 0.9455 and currently trades at 0.9495, up for the second day in a row, recovery after falling last week to the lowest since August 2015. 

A slide in US bonds boosted the greenback. The 10-year yield rose from 2.26% to 2.32%, the highest in a week. Also economic data came in better-than-expected. US consumer confidence rose above expectations while the Richmond Fed Manufacturing Index came in at 14 (vs 7).  

Another factor that could be supporting the greenback is the fact that the US Senate could vote on the health-care bill today and it could actually pass. That could support Trump’s reform agenda. 

USD/CHF Levels to watch 

To the upside, resistance levels might lie at 0.9505 (daily high), 0.9520/25 (Jul 18 low / Jul 21 high) and 0.9555/60 (Jul 19 high). On the flip side, support might be seen at 0.9485 (European session high), 0.9450 (daily low) and 0.9437 (2017 low).