USD / CHF jumps above 0.9150, outlook turns positive

4

Get real time updates directly on you device, subscribe now.

  • USD / CHF is having the best day in more than a month.
  • The DXY rises above 94.00, the highest level in four weeks.

The USD/CHF it’s up for the fourth day in a row on Thursdays. It accelerated the upward movement after the meeting of the European Central Bank (ECB). It is trading at 0.9165, the highest level since October 19.

The dollar remains strong across the board as market participants remain cautious. The DXY rose above 94.00, the highest level in four weeks. Economic data from the US was better than expected, showing a decline in jobless claims and record growth during the second quarter.

The Swiss franc further weakened against the US dollar following the European Central Bank decision and Lagarde’s press conference. Wells Fargo analysts point to Lagarde, and accompanying comments “were remarkably subdued in tone, offering a very clear signal of further easing in December.”

Technical perspective

USD / CHF rose above the 20-day moving average for the first time since early October and is now testing the 0.9160 / 65 resistance area. A break to the upside could lead to a test of the 0.9200 level. A close around current levels would reinforce the short-term outlook, now bullish. A pullback below 0.9120 would ease the bullish pressure, exposing the next support at 0.9085.

Credits: Forex Street

Get real time updates directly on you device, subscribe now.