USD/CHF signals potential recovery but remains limited by 0.9385

• USD/CHF heads for the first gain in a week. 
• Swiss franc remains among the strongest in Europe. 

The Swiss franc lost strength late on Monday, after hitting monthly highs versus the pound and the euro and consolidated modest losses against the US Dollar. 

USD/CHF is about to post the first daily gain in a week. The pair rose from 0.9335 to 0.9385 and near the end of the session trades at 0.9375. The recovery found resistance below the 0.9400 area. Some bearish pressure is still seen but not at the levels of last week when USD/CHF lost more than 300 pips. 

The rapid slide of the USD/CHF triggered some comments about a possible intervention from the Swiss National Bank to limit the appreciation of the Swiss franc. In the past, interventions were related to the EUR/CHF pair, not USD/CHF. Against the euro, the Swiss Franc reached in January the lowest level since 2015. Then,EUR/CHF corrected sharply to the downside but at the moment is trading around 1.1600, significantly above the average price of the last three years. 

Technical levels 

USD/CHF appears to have formed a base around 0.9300. A consolidation under that area would increase the bearish pressure. Below support levels might lie at 0.9285, 0.9250 and 0.9235. On the upside, the immediate resistance is seen at 0.9385 (Jan 29 high and the 20-SMA in four hours chart) followed by 0.9450 and 0.9530 (Jan 19 low).