A strong fall of the u.s. dollar against the european currencies made the USD/CHF down from 0.9685 to 0.9635. The pair then rebounded and trimmed losses. At this time, trading at 0.9660, 20 pips less than the closing price on Friday.
EE.UU falls, weakening the USD/CHF
The abrupt decline of the dollar green pushed the pair to test the lows of Friday around 0.9620/30. Up to now, has been able to remain bullish, but momentum in the short term changed significantly. The fixation of the end of the month in the middle of an environment of low volume are likely to favor the recent increase in volatility among the european currencies and the u.s. dollar. The dollar index fell to lows of a year in 92.83.
The swiss franc was last week the worst performance among the currencies operated. The pair USD/CHF went up despite the weakness of the dollar. The rally sent the price above 0.9700 but had difficulties to keep upward. Today is retreating, making until now a modest retreat after the rally of last week.
If the pair falls below 0.9645 (MA 55-day) the correction could gain momentum, extending the movement to the 20-day moving average that stood at 0.9585. In the other direction, if the dollar goes up and consolidates at the top of 0.9700, then a test of the highs of June at 0.9770 might be. That area is the key resistance, before the area 0.9810/20.