FXstreet.com (Córdoba) - Despite a sharp upside rally, the Dollar was unable to break above 1.0200 against the Swiss Franc. USD/CHF peaked at 1.0203, posting a one-week high but pulled down to 1.0175. Currently the pair trades at 1.0182/86, 1.00% above today's opening price. Greenback is recovering after finding support at 1.0050.
The pair is rising for the second day in a row accumulating an increase of 150 pips and continues to recover after falling to a 15-month low on Friday.
James Chen, Chief technical strategist at FX Solutions, affirms: The key near-term level to watch, as mentioned, is parity at 1.0000. But even if this is reached, there is likely further room to the downside for this pair potentially to fall. On any strong breakdown below parity, the major further support target to the downside resides around 0.9640, the all-time low for the pair that was reached in March 2008. Within the context of the strong current downtrend, dynamic upside resistance resides in the region of the downtrend resistance line that extends from the April high.