USD/CHF erases losses, hits 3-week highs

USD/CHF had been moving in ranges since Friday’s American session and recently it broke to the upside, hitting the highest level in three weeks and approached a key resistance area.

Near 0.9800

The pair bottomed at 0.9747 earlier and quickly rose back above 0.9750. It turned to the upside, toward the upper limit of a short-term trading range located around 0.9770. Initially the mentioned area capped the upside, but then, amid a weak Swiss franc in the market, it broke to the upside.

Recently it reached a fresh daily high at 0.9782 and it was trading around 0.9780, holding a bullish tone in the short-term as it continues to approach to the 0.9800 area. The mentioned level is a key resistance that limited the US dollar since mid-March. A consolidation above could give further bullish momentum to the par pushing the price to the strongest level in two months.

The Swiss franc and the yen were on Monday the worst performers among majors. GBP/CHF climbed toward 1.4100 to test May highs while EUR/CHF rose back above 1.1050.

Data ahead

On Tuesday inflation data will be released in Switzerland, with the Producer and Import Price index and in the US, with the CPI index. The main event of the week will be the release of the FOMC minutes on Wednesday.