The Swiss franc erased losses against the US Dollar during the last three hours and also climbed versus its European rivals. USD/CHF dropped back below the parity level and accelerate to the downside.
USD/CHF sharp reversal
Earlier the pair peaked at 1.0039, the strongest level since in a month amid a general decline of the Swiss franc in the market, that triggered speculations about a possible intervention from the Swiss National Bank.
Recently the US dollar turned to the downside across the board and pushed the USD/CHF pair sharply to the downside. From the highs, it dropped almost a hundred pips and bottomed at 0.9949. It was trading at 0.9955, near the lows of the day, that reached during the Asian session at 0.9943.
USD/CHF on consolidation mode
Despite today’s spike to 1.0040 and the reversal, USD/CHF continues to be unable to move off the 0.9910 – 0.9950 range. The pair still holds a modestly bullish tone as it holds above the 20-day moving average that stands at 0.9905 and since the begging of the month it has been offering support.
A consolidation above the parity level could boost the US dollar while a close below 0.9900 could open the doors for more declines.
(Market News Provided by FXstreet)