USD/CHF rises further, closer to 0.9800

USD/CHF continued to rise and hit a fresh daily high during the American session at 0.9758. The pair is about to post the highest close since April 22 as it extends the rally that started last week from multi-month lows below 0.9450.

The Swiss franc on Tuesday so far is also falling versus the pound and the euro. EUR/CHF rose to test 1.1100, hitting a 3-month high while GBP/CHF broke 1.4060 and climbed toward 1.4100.

USD/CHF ready to test 0.9800?

The pair is now near the 0.9800 area that has become an important short-term resistance area. A break higher is likely to trigger more gains for the US dollar. The area capped the upside several times in March and April. Also, the pair could potentially form a head and shoulders pattern, that could lead to a rally targeting levels above parity. USD/CHF has also risen above the 55-DMA.

On the downside, if it falls below 0.9650 the US dollar would lose momentum with the price back below the 20-DMA and under the relevant support area seen around 0.9655/60 (February, March 17 & 18 and May 6 low).