USD/CHF Consolidates

USD/CHF has been consolidating around parity level. The pair is now trading at 0.9946 and it seems ready to re-test the previous high of 1.0050. If that level is broken, we could see another leg to the upside with potential target at 1.0350.

The US dollar has been strengthening lately and traders and investors are pushing aside other currencies like the Euro and Sterling as well as safe haven assets like Gold and Silver.

This rush to the Greenback could be the result of easing the tariff tensions and bringing back the certainty and optimism to the US economy. However, it is still early to draw the line and go long equities and US dollars so it would be best to wait for more clarity and mutual agreements between the US and China.

Chart: USD/CHF D1