FXStreet (Córdoba) – The Swiss franc weakened sharply on Friday, with USD/CHF climbing to fresh 5-year highs above 1.0300, amid speculation the SNB might be “contributing” to franc’s fall ahead of the ECB meeting next week.
USD/CHF broke above the 1.03 mark and climbed to its highest level since August 2010 at 1.0327 before easing slightly. The pair however, entered a consolidation phase near highs and it was last trading at 1.0306, posting a 0.69% daily gain. Over the week, USD/CHF has climbed 1.19% and is on track to post its sixth consecutive gain in a row.
As the ECB is expected to announce additional QE and possibility a cut in the deposit rate, the SNB faces increasing pressure to prevent the franc from strengthening ahead of its December 10 meeting.
USD/CHF levels to consider
As for technical levels, next resistances are seen at 1.0327 (5-year high, Nov 27), 1.0400 (psychological level) and 1.0449 (Aug 22 2010 high). On the other hand, supports could be faced at 1.0225 (Nov 27 low), 1.0203 (Nov 26 low), 1.0184 (10-day SMA) and 1.0121 (Nov 20 low).
(Market News Provided by FXstreet)