USD/CHF rises back toward 1.0300 despite USD weakness

By FXStreet FXStreet (Córdoba) – The Swiss franc is the worst performer among European currencies on Tuesday and failed to benefit from a weak US dollar.

Strong bounce at 1.0250/60

USD/CHF dropped to 1.0253 after the release of the US ISM manufacturing report that showed the worst reading since 2009 and reached the lowest level since last Friday. But the pair bounced quickly to the upside, erased losses and recently printed a fresh daily high at 1.0302.

Currently, the pair is hovering around 1.0300, modestly higher for the day, but far from the lows and now with a bullish tone for the coming hours. Price rose back above the 20-hour MA, that stands at 1.0280 and is moving toward yesterday’s highs that lie at 1.0320.

To the downside, the Swissy could gain momentum below 1.0280. The area around 1.0255/60 has become a key support area, that capped the decline yesterday and also today during the Asian and the American session. A break below could open the doors to a more significant correction.
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Source:: FX Street