FXStreet (Mumbai) – The US dollar snapped its long stretch of gains and witnessed steep losses versus the Swiss franc in the European morning, with USD/CHF losing 0.95 handle, largely as the greenback ran through fresh sellers ahead of Europe open, correcting heavy gains seen on Tuesday.
USD/CHF drops from 0.9539
Currently, the USD/CHF pair trades -0.49% lower at fresh session lows of 0.9488, retracing from fresh highs reached at 0.9539 in Asian session. The pair wiped out gains and fell further into losses as the traders squared-off their USD longs and locked-in gains after the recent rally after durable goods orders, new home sales and consumer confidence from the US booked upbeat figures.
The dollar index which measures the greenback’s strength against its major peers, trades near session lows at 97.05, recording a -0.34% loss on the day.
Meanwhile, USD/CHF is likely to track the EUR/USD pair for further momentum amid lack of fresh triggers in a data-light trading session ahead. USD/CHF and EUR/USD works in inverse relationship with any gains in the shared currency to boost the Swiss franc higher.
USD/CHF Technical Levels
To the upside, the next resistance is located at 0.9520 levels and above which it could extend gains to 0.9540 levels. To the downside, immediate support might be located at 0.9450 levels and below that at 0.9400 levels.
(Market News Provided by FXstreet)