USD/CHF refreshes weekly highs above mid-0.97s, FOMC minutes in focus

The USD/CHF pair advanced to a new weekly top at 0.9768 in the early NA session and started to give back its daily gains. As of writing, the pair was trading at 0.9750, gaining 0.25% on the day.

Although the data from the U.S. came in below the market estimates on Wednesday, the greenback continued to push higher against its rivals, pushing the US Dollar Index up to the 94 handle. At the moment, the index is at 93.95, up 0.2% on the day. According to the data jointly announced by the U.S. Department of Housing and Urban Development, privately-owned housing starts in July contracted by 4.8% on a monthly basis in July while the building permits retreated by 4.1%.

• US: Privately-owned housing starts in July were at 1,155,000

Later in the session, the Federal Reserve will be releasing the minutes of its July meeting, in which the Committee decided to leave interest rates unchanged. In the minutes, investors will be looking for clues on the timing of the balance sheet reduction and the possibility of another rate hike before the end of the year.

• FOMC minutes in the limelight – Danske Bank

In the meantime, after closing the previous day virtually flat, major equity indexes in the U.S. started the day higher with the Dow Jones Industrial Average and the S&P 500 both rising 0.2% at the moment. The pair could receive an additional boost from the solid performance of stocks as it would suggest risk-on mood, which would hurt the demand for the safe-haven CHF.

Technical outlook

0.9770 (Aug. 8 high) could be the next hurdle on the upside ahead of 0.9825 (May 18 high) and 0.9900 (psychological level). On the downside, supports are located at 0.9700 (Aug. 15 low/psychological level), 0.9665 (20-DMA) and 0.9580 (Aug. 11 low). The RSI indicator on the daily graph is moving higher towards the 70 mark, suggesting that the bullish momentum is still alive.

• USD/CHF room for a test of 0.9808/14 – Commerzbank