USD/CHF rebounds from 6-month lows still remains under pressure

USD/CHF bounced from 6-month lows and trimmed daily losses but the greenback still remains under pressure headed toward the lowest close since early November. 

A weak US dollar pushed the pair to the downside earlier today. It bottomed at 0.9691 hitting the lowest since the day after the US Presidential elections. Then bounced to the upside and erased most of the day’s losses. The recovery lost strength at 0.9745 and currently, it trades at 0.9725, modestly lower for the day. 

The Swiss franc is about to post gains for the seventh time out of the last eight trading days. The currency has been following the rise of the euro. The common currency is outperforming on Monday boosted by Chancellor Merkel comments. 

Merkel sends euro higher - BBH

Levels to watch 

If the pair continues to slide, the next medium-term support area is located around 0.9650. That area could offer support to the US dollar favoring a temporal bounce. A close below 0.9700 would clear the way for a test of 0.9650. 

On the upside, a recovery above 0.9770 (20-SMA in 4-hour chart) could remove some bearish pressure.  The US dollar needs to regain levels on top of 0.9800/10, in order to gain a relevant support for a stronger recovery.