FXStreet (Córdoba) – The Swiss franc is rising of the second day in a row against the US dollar and is among the top performers over the last few days. USD/CHF managed to hold above the parity level and now is attempting to recover ground.
USD/CHF: Just a correction?
The pair bottomed during the European session at 0.9989, hitting the lowest level since Monday but it failed to consolidate below 1.0000 and recovered ground above. The recovery from the lows found resistance around 1.0035/40, where the 20-hour moving average currently stand.
The rebound was followed by a recovery in equities in Europe and in Wall Street, where main stock indexes trimmed losses. At the moment, USD/CHF trades a t1.0020/25, down 0.45% for the day so far.
The short-term bias and technical indicators favor the downside, but if the US dollar climbs above 1.0050, where an intraday downtrend line is seen, greenback could gain strength (in line with the dominant trend) as it would be back above the 20-hour SMA and the mentioned line.
If it holds below 1.0035 – 1.0050, the parity level is likely to remain under pressure. Below 1.000, support levels might lie at 0.9988 (daily low), 0.9930 (Dec 15 & 16 high) and 0.9780 (Dec low).
(Market News Provided by FXstreet)