USD/CHF retreats to 1.0025 after reaching one-year high

• USD bulls are keeping the market above the key psychological level of 1.0000.
• The monetary divergence between the Federal Reserve and the Swiss National Bank exacerbates the USD bull move. 

The USD/CHF is trading at around 1.0028 up 0.28% on Monday’s trading as the pair retreats from the one-year high made at 1.0057 earlier in the US session. 

The US dollar is trading firmly against the Swiss franc although the greenback had a consolidation day against major pairs like EUR, GBP, and JPY. 
 
The swissy is trading higher on a combination of factors: an overall strong USD demand, the technical break of the parity level, European stocks trading higher diminishing CHF safe-haven demand and the overall dovish stance of the Swiss National Bank. 

The US dollar has been in a strong bull trend these last three weeks as investors are expecting the Federal Reserve Bank to follow through on policy normalization. On the FOMC last Wednesday, the Fed said that inflation was on track, which bodes well for more rate hikes. On the other hand, the SNB is not expected to tighten monetary policy as it sees the franc as “still highly valued” and additionally pointed out in recent comments “a weaker franc is a welcome relief for the economy.” 

USD/CHF 4-hour chart 

The trend is bullish and resistances are seen at the 1.0057 high of the year followed by 1.0100 swing high level. To the downside, supports are priced in at the 1.0000 and 0.9950 psychological levels.