USD/CHF rises toward 0.9700

The Swiss franc is unchanged gains the US dollar on Monday. After the beginning of the American session, USD/CHF turned to the upside and rose toward 0.9700. The pair remains below but is trading at 0.9685/90. On European hours, the slide from last week highs near 0.9730 found support at 0.9665/70. 

The greenback gained momentum during the last hours but the yen outperformed and printed fresh highs as US Treasuries recover ground. The Swiss franc is marginally lower with a limited impact from Sunday’s French elections. 

Technical outlook 

Last week the pair finished higher, after making a bounced near 0.9600, the lowest since November. On a wider perspective, the pair continues to move with a bearish bias. In the short-term, the US Dollar is rising for the fourth day in a row, in consolidation mode with a modest corrective bias

It needs to raise above the strong level of 0.9715/20 (also the 20-day moving average) in order to gain support for a more sustainable recovery. While it remains below, the bearish outlook would remain intact. Downside momentum is likely to rise with a decline under 0.9650. Below that level attention would turn to 0.9610/15 (2017 lows). 

USD/CHF correcting higher near term – Commerzbank