USD / CHF supported at 0.9320, consolidates gains in the 0.9340 zone

• The US dollar reversal from the 0.9350 area has been contained above 0.9320.
• The dollar consolidates gains after a four-day rally.
• Above 0.9356 / 69, the pair could accelerate the uptrend towards 0.9473 – Credit Suisse.

The US dollar is consolidating gains around 0.9340 on Thursday after a four-day rally from 0.9240. The pair’s pullback from the 5 1/2 month highs 0.9365 has been contained above the previous highs at 0.9320 / 30 in a rocking trading session.

The US dollar rally loses steam

The dollar is hesitating after having appreciated more than 1% in the past four days, fueled by the rebound in US bond yields amid market expectations that the Federal Reserve could begin to reduce bond purchases to from November.

The bitter market mood in the American session on Thursday, with equity markets turning negative after a positive open, is weighing on the USD, in favor of the safe-haven Swiss franc.

Furthermore, the economic calendar has not been particularly favorable to the dollar. Weekly jobless claims increased for the third time in a row in the week of September 25, with 362,000 new claims, while the second-quarter US Gross Domestic Product was revised to a 6.7% increase from the previous estimate of the 6.6%.

USD / CHF: Breakout of 0.9356 / 69 Resistance Will Open Path to 0.9473 – Credit Suisse

The pair is now capped below major resistance at 0.9356 / 69 which Credit Suisse’s currency analysis team says would lead the way to 0.9473: “It is worth reiterating that there is little significant resistance if a breakout above 0.9356 / 69 is seen as high as 0.9473, suggesting that we could see a sharp acceleration in momentum. “

Technical levels