USD/CHF extends gains above 0.9700 as CHF consolidates losses

The Swiss franc is among the worst performers on Monday, extending the slide that started last Friday. With the latest rally, USD/CHF erased last week losses and is back near monthly highs. EUR/CHF is up 80 pips trading on top of 1.1450 while GBP/CHF rose above 1.2600. 

An improvement in risk appetite weakened the demand for safe-haven assets, including the Swissy and gold (down $9). Main Wall Street indexes are up on average 1%. Also, a stronger US dollar boosted the pair. 

Dollar Index gains momentum and rises to test Friday’s highs

USD/CHF broke above 0.9720 during the American session and printed a fresh 5-day high at 0.9731. It is trading at 0.9715/20, up almost a hundred pips, having the best performance in two weeks. 

USD/CHF levels 

Last Friday, the pair bottomed at 0.9580, however, ended the week far from the lows and above the key 20-day moving average (0.9610), signaling some exhaustion to the downside.

The strong bounce from 2-week lows changed the short-term tone in favor of the upside. The bullish bias is likely to remain intact as long as price holds on top of 0.9700. 

To the upside, the key resistance is seen around the 0.9770 area (June and August highs) and above at 0.9810 (March low). On the flip side, support might lie at 0.9700, 0.9670/75 (Aug 10 high) and 0.9610 (20-day moving average).