USD/CHF extends gains above 0.9800

USD/CHF continues to move to the upside as it has been the case since August 19. Recently it peaked at 0.9832, hitting the strongest level in three weeks. It was trading at 0.9820/25, up 0.40% for the day.

The Swiss franc is also losing ground versus the pound and the euro while the US dollar is the top performer in the currency market on Tuesday.

USD/CHF back at the 200-DMA

After the pair bottomed at 0.9530/35 back on August 18, USD/CHF moved to the upside and climbed almost 300 pips. The rally brought the price on Friday above the 20-day moving average and now is testing the 200-day average that stands at 0.9830. A consolidation on top could add an extra support to the US dollar.

On a wider perspective, the pair continues to move sideways since March, with a key resistance below 0.9950 and with a strong support above 0.9500. Now momentum favors the upside, but as long as it remains unable to hold on top of 0.9950 the medium-term outlook is likely to continue to favor a neutral bias.