USD/CHF jumps to highs since June 2020 near 0.9500

• Swiss franc among the worst performers on Tuesday.
• The dollar reaches the highest level in almost two years against the Swiss currency.
• USD/CHF targets the 200-week moving average at 0.9520.

The USD/CHF broke above 0.9450/60 and climbed to 0.9491level last seen in June 2020. Since the peak it has retraced slightly and trades at 0.9475/80, in the run-up to the American session, supported by a weakening Swiss franc.

The Swiss currency is among the worst performers on Tuesday. Although the dollar index reached new highs in years above 101.00, the advance is the main consequence of the USD/JPY rally, since against the rest of the currencies, the dollar presents mixed results.

Part of the franc’s weakness has a reflected in the rise of the EUR/CHF, which operates at highs since the beginning of the month, above 1.0220. The rise in European bond yields, added to Macron’s improvement in the polls ahead of the second round of the presidential election in France, may be key factors behind the rebound in the cross.

With no big data ahead, the dollar’s focus remains on the Treasury bond market. USD/CHF is rising for the sixth day in a row. In front of it there is an important barrier in the area of ​​0.9500. A confirmation above would leave the pair ready for further rallies. At 0.9520 it is a 200 week simple moving average that passes through 0.9525; If there is a weekly close clearly above, another bullish signal would be generated.

In the opposite direction, first support looms at 0.9430/35 and below at 0.9415. A close below this latest level would point to a downward correction.

Technical levels