USD/CHF rises sharply to 0.8900 on Friday, erases weekly losses

• Swiss franc drops across the board on Friday, even amid risk appetite
• USD/CHF is having the best day in weeks, climbs to 0.8900.

The USD/CHF is rising sharply in Friday and recently climbed to 0.8908, hitting the highest level in two days. The pair is recovering from multi-year lows, boosted by a stronger US dollar that gains particularly versus main European currencies.

The lack of agreement in Brexit and despite lower US yields, USD/CHF is rising steadily on Friday. Even as global markets decline. The Swiss franc is also lower against the euro and flat versus the pound.

The US Dollar Index is up on Friday, trading around 91.00. It is trending higher but still remains near the monthly lows. The recovery of the US dollar versus European currencies is seen so far as a correction.

Consolidation ahead?

The main trend in USD/CHF is bearish. The negative momentum eased. So far no clear signs of a reversal are seen. It would be positive for the greenback if it holds above 0.8900. The next resistance stands at 0.8945, followed by 0.9020.

Friday’s rally is the best performance of the dollar in weeks. The weekly candle shows the Swiss franc losing strength and suggesting a potential consolidation ahead between 0.9020/30 and 0.8850. While below 0.9140, the bias will be downward.

Technical levels