USD/CHF faded a spike to 0.9922, drops back below 0.9890

By FXStreet The USD/CHF pair faded its spike to 0.9922, led by a drop in US initial jobless claims, and has now dropped back below 0.9900 level to currently trade at 0.9885.

Including today’s up-move to 0.9922, the pair has recovered almost 500-pips from a multi-month low level of 0.9444 touched on May 3. The sharp up-move from lower levels, coupled with daily RSI reading approaching near-term overbought territory warrants some consolidation phase before the pair attempts to further build on to its recovery trend.

Moreover, since the pair has already broken through an important resistance a follow through up-move would confirm a near-term bottom formation near May lows.

Technical levels to watch

Weakness below day’s through level near 0.9860 is likely to find immediate support at a confluence resistance break-point near 0.9840-35 region. Fall below 0.9840-35 resistance turned support should be short-lived and might get bought into near 0.9800 round figure mark.

On the upside, sustained momentum back above 0.9900 level now seems to get extended, initially towards 0.9945-50 resistance and eventually towards reclaiming the parity mark in the near-term.
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Source:: FX Street