FXStreet (Mumbai) – The Swiss franc remains heavily bid versus the American dollar in the mid-European session, driving USD/CHF deeper in to losses just above 0.93 handle. The Swiss currency emerged the biggest gainer this session so far mainly on the back of increased demand for safety assets as Greek debt deal lurks.
USD/CHF drops from 0.9375
Currently, the USD/CHF pair trades -0.35% lower at 0.9332, recovering slightly from fresh session lows printed at 0.9319. The Swiss franc gained upside momentum versus the greenback largely on the back of generalized risk-on moods amid uncertainty surrounding Greece with markets speculating increased Grexit fears. While traders flock to safe-havens such as CHF ahead of Euro group meeting tomorrow.
Moreover, EUR/USD resilience also supports the franc, knocking-off USD/CHF almost 50-pips lower. Meanwhile, the dollar index which measures the greenback’s strength against its major peers, now trades muted around 95.35, near session lows at 95.28.
Karen Jones, Analyst at Commerzbank notes, “USD/CHF has started to erode the 2 month downtrend. A close above here should be enough to trigger a recovery to the 0.9543 end of May high and the top of the cloud resistance at 0.9600.” While she recommends buying on dips to 0.9320 and further add at 0.9320.
USD/CHF Technical Levels
To the upside, the next resistance is located at 0.9375 (Today’s High) levels and above which it could extend gains to 0.9408 (June 11 High) levels. To the downside, immediate support might be located at 0.9300 levels and below that at 0.9272 (June 15 Low) levels.
(Market News Provided by FXstreet)