FXStreet (Mumbai) – The US dollar keeps an edge over the Swiss franc in the European morning, keeping USD/CHF comfortably above 0.94 handle. The Swiss currency failed to keep gains despite risk–on moods across the board spurred by Greek referendum outcome while subdued Swiss inflation figures also added to the CHF weakness.
USD/CHF supported above 0.9400
Currently, the USD/CHF pair trades 0.28% higher at 0.9428, retracing from fresh session highs printed at 0.9449. The Swiss franc weakened versus the greenback, as markets ignored the safe-havens in gold and CHF amid the ongoing Greece saga with the latest referendum results raised Grexit worries.
Moreover, the Swiss franc was heavily sold-off largely undermined by a broadly weaker EUR/USD. While markets also weighed in line with expectations Swiss consumer price data which showed a 0.1% increase in June, compared with the 0.2% increase seen in May, while markets had forecast a 0.1% rise for the reported period.
Karen Jones, Analyst at Commerzbank notes, “USD/CHF has eased back to and is holding the previous downtrend at 0.9396 today. The market is looking a bit perkier as it has completely ignored the recent key day reversal to the downside and has eroded the near term resistance line to head into the middle of the cloud. We would allow for an attempt on the 200 day ma and the May high at 0.9529/43.”
“Dips lower should find some support circa 0.9344, and 0.9243, this should ideally now hold the downside – this effectively protects the 0.9215 recent low and the 0.9072 May low.”
USD/CHF Technical Levels
To the upside, the next resistance is located at 0.9451 (July 5 High) levels and above which it could extend gains to 0.9491 (July 1 High) levels. To the downside, immediate support might be located at 0.9400 levels and below that at 0.9337 (July 1 Low) levels.
(Market News Provided by FXstreet)