The Greenback has been under fire all week long. Economic events such as the ECB Deposit Rate Decision, FOMC Minutes, and U.S. CPI/PPI have brought added volatility to the USD. Results have been mixed, as illustrated by the whipsaw action in June USD Index futures. However, one bright spot for the dollar has been its performance against the Swiss franc. The USD/CHF has trended higher over the past three sessions and rates are back above par (1.0000).

April Has Been Good To USD/CHF Bulls

Since the lows posted in late-March, the USD/CHF has steadily ground higher. Rates have rallied from beneath .9900 to above 1.0025. Is the rally about over or is the Swissie just getting started?

Here are the key levels to watch in this market until Friday’s closing bell:

• Resistance(1): 62% Current Wave, 1.0036
• Support(1): Bollinger MP, .9990
• Support(2): Daily SMA, .9977

Overview: Earlier in the session, the Swissie posted a hard test of the 62% Current Wave retracement (1.0036). Since that time, rates have fallen 20+ pips and consolidated near the 1.0025 handle.

In the event that the 62% retracement is taken out, a test of March’s high (1.0124) will come into view. Given the wide-open Friday U.S. economic calendar, don’t be surprised if the USD/CHF continues to grind north and challenge the key 62% Fibonacci retracement level.