USD/CHF: Rally losses momentum at key technical resistance

• Swiss franc remains weak in the market despite geopolitical tensions. 
• USD/CHF fails to break monthly highs and retreats. 
• EUR/CHF heads for the highest close since 2015.

The USD/CHF pair is about to end the day on a weak note despite posting gains. Again the rally of the US Dollar was capped by the 0.9650 area, like last Friday. The undertone remains bullish but gains seem limited while below the mentioned level. 

The US Dollar gained momentum on Thursday against European currencies and also versus the yen. During the US session pulled back, particularly versus the pound. Reports about the US planning airstrikes in Syria had little impact and did not intensify the demand for safe-haven assets. 

USD/CHF peaked at 0.9645 following the release of the minutes of the latest European Central Bank meeting. Officials showed concern about the recent strength of the Euro and of a full-fledged trade war. 

After the beginning of the US session, the US Dollar lost momentum and USD/CHF pulled back. It stabilized around 0.9620, far from the highs, but still up almost 50 pips, posting the third daily gain in-a-row.

USD/CHF Levels 

To the upside, the key area is seen around 0.9650: a horizontal resistance and also a downtrend line from November highs. A consolidation on top would likely open the doors for 0.9700. On the flip side, support levels might be seen at 0.9610, 0.9595 and 0.9570.