USD/CHF hits one-month highs above 0.9700

• Swiss franc among worst performers amid higher yields.
• USD/CHF breaks key range and extends rally.
• EUR/CHF at the highest level in 11 days.

The USD/CHF is holding onto daily gains on tis was to the highest close in a month. The pair peaked during the Asian session at 0.9707 and then pulled back, finding support at 0.9655/60.

The bias in USD/CHF is bullish in the short-term but while it remains unable to hold above 0.9700, the upside seems limited. A slide under 0.9600 could change the bias to bearish.

Dollar erases gains, Swissy fails to recover

The US dollar weakened during the American session and kept USD/CHF below 0.9700. The DXY is flat on Monday, hovering around 108.80, after hitting a multi-decade high at 109.47.

Comments from European Central Bank policymakers during the weekend pushed European yields to the upside and weighed on the Swiss franc. The German 10-year yield is at 1.50%, about to post the highest close since late June.

The EUR/CHF is up for the second day in a row and peaked at 0.9696, the highest since August 18. It is back above the 20-day Simple Moving Average. A key resistance area is located around 0.9700 and a break higher could trigger more gains.

Technical levels