USD/CHF remains well supported above 0.9300, near weekly highs and eyeing 2021 highs

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

  • USD/CHF has remained well supported above 0.9300, ignoring strong Swiss data and not reacting to US data.
  • The pair is trading up about 2.2% on the week and trading near weekly highs at 0.9335.
  • USD/CHF is now eyeing a test of 2021 highs in the 0.9370 zone.

The USD/CHF it has remained well supported above 0.9300 on Friday, as has been the case now since before the US open on Thursday, as December highs at 0.9294 offer support. On the upside, technicians will note resistance in the form of weekly highs at 0.9335 which is likely to cap price action for the rest of the week. The pair did not react to stronger-than-expected data from the Swiss KOF Leading Indicator, which rose for the first time since early 2021, nor has it seen much of a reaction to the recent outpouring of US data.

It is true that the dollar experienced some initial weakness following evidence of an easing in wage pressures after the quarter-on-quarter rate of inflation in the fourth quarter labor cost index fell more than expected. That may have triggered momentary dollar profit-taking, but with a larger-than-expected rise in core PCE inflation in December and a slew of US data next week, it’s too early to say that the The dollar’s recent rally is over.

That dollar rally, which was initially triggered on Wednesday after more dovish-than-expected comments from Fed Chairman Jerome Powell at the Fed’s post-meeting press conference, has seen USD/CHF rise from less from 0.9200 to current levels above 0.9300 from Wednesday. That rally since Wednesday has taken the pair’s weekly gains to around 2.2% and pushed the pair north of the 0.9100-0.9300 range that has prevailed since early December.

USD/CHF is now eyeing a test of 2021 H2 highs in the 0.9370 area. If next week’s US data (ISM surveys and official labor market report) turn out to be appealing and further fuel the Fed’s aggressive bets, the bulls will bet that USD/CHF has a run on the level of 0.9400.

Technical levels

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

Leave A Reply

Your email address will not be published.

buy kamagra buy kamagra online $255 payday loans online same day no denial payday loans direct lenders only