.9900 has proven to be a key level for the Swissie, drawing heavy two-way participation throughout today’s forex session. Following a test of the .9850 area, bidders have stepped in and restored order above .9900. Is the USD/CHF ready to post a return to par value? The coming 24 hours are likely to tell the tale.

Today’s release of the U.S. ISM Non-Manufacturing PMI brought positive price action to the USD/CHF. The coming overnight session is likely to bring another set of market-moving economic events, this time facing the Swiss franc. Eurozone Q1 GDP and the ECB Deposit Rate Decision are scheduled for Thursday. If GDP lags and the ECB takes the FED’s dovish lead, the USD/CHF will likely revisit the all-important 1.0000 handle.

USD/CHF Probes Beneath .9900

In a Live Market Update from Monday, I outlined a long trading plan for the USD/CHF. It proved to be a success, with rates bouncing 25 pips before washing out the .9900 level. If you missed the recommendation, check it out here.

Overview: The Swissie has posted a wild day of trade, featuring both a crash and a furious rally. Late week action will likely extend the volatility, with the ECB Deposit Rate Decision (Thursday) and U.S. NFP Report (Friday) spiking participation ahead of the weekend break.

At press time (12:30 PM EST), the key number facing the USD/CHF is .9900. If we receive a settlement above this level, be on the lookout for a rally to the Daily SMA (1.0035) by Friday’s closing bell.