USD/CHF finds support at 0.9600 and jumps toward 0.9660

The US dollar is up against the Swiss franc on Wednesday after making a strong recovery during Janet Yellen testimony to Congress. USD/CHF is trading around 0.9650 as it continues to look for a clear direction. 

The Chair of the Board of Governors of the Federal Reserve sounded optimist on the economy and offered no particular time on when will the central bank start reducing the balance sheet. She mentioned that the current level of the Fed Funds is not far from the neutral level. 

Fed's Yellen speech: Very focused on trying to achieve 2% inflation target 

Fed's Yellen speech: As short term interest rates rise, banks will compete for deposits, raise deposit rates

USD/CHF between 0.9600 and the 20-SMA

The pair bottomed at 0.9601 (3-day low) after Yellen’s prepared remarks were release. Then it reversed and reached a daily high at 0.9661. 

Price continues to consolidate and remains limited. Today the area around 0.9600 offered support. A break lower could signal that the pair is ready to resume the downside, in line with the dominant trend. 

On the upside, the 20-day moving average at 0.9665 is a key level. Yesterday USD/CHF traded on top, but failed to hold. If the US dollar manages to post a daily close on top, it could gain momentum for an extension the recovery.