USD/CHF spikes to 0.9530 but remains in a range

• Volatility rises in the currency market on London fix, US dollar down, then recovers.
• USD/CHF flat on Friday and also for the week, moving sideways.

The USD/CHF jumped from daily lows near 0.9485 to 0.9530, hitting the highest level in almost a week and the pulled back. As of writing, it trades at 0.9515/20. Volatility jumped momentarily amid the London fix, pushing the greenback to the upside across the board.

The upside so far remains limited on Friday. Equity prices are losing strength in Wall Street. While in Europe, discussions about the fund to support countries hit by the coronavirus are far from over, signaling that a deal before July is unlikely. EUR/CHF printed a fresh three-week low at 1.0634.

Up and down, still in the range

Despite the swing, USD/CHF continues to trade in the weekly range, moving sideways. For the third day in a row, the pair is moving around 0.9500. A consolidation above 0.9520 would clear the way to more gains. While on the downside, the critical short-term support stands around 0.9480.

The US dollar is about to end the week unchanged against the Swiss franc. The weekly chart still favors the downside, but some further bullish correction is on the cards. The 0.9600 barrier will likely limit the upside. While on the downside, a weekly close clearly below 0.9500 would sign more losses ahead.

Technical levels