USD / CHF testing the DMA of 50 at 0.9220, up 100 pips from the US inflation report.

• USD / CHF is consolidating around its 50 DMA at 0.9220 having risen 100 pips in the last two days.
• If the pair can break to the upside, this opens the door for a move towards resistance at the 0.9250 region.

The USD/CHF it is currently consolidating on both sides of its 50 day moving average just below 0.9220, having rebounded from the Asian session lows around 0.9180. The bullish move comes amid a continuation of the overall strength of the USD as market participants continue to weigh the implications of the latest US consumer price inflation report, which showed that the annual CPI rate The US overall reached its highest level since November 1990 at 6.2% in October.

Thursday’s rise means that the pair is now up almost 100 pips from its levels just above 0.9120 before the data, a rally of around 1.0%. If USD / CHF can break above its 50 DMA at 0.9220, there is a breakeven area of ​​some mid-October lows and highs around 0.9250 that could offer some resistance. Above that, a more notable resistance area is just above the 0.9300 level, where a triple top resides since the beginning of October.

Comments from policymakers at the Swiss National Bank (SNB) have not had any noticeable impact on USD / CHF in recent days. Andrea Maechler, a member of the SNB Governing Board, has spoken publicly on a few occasions in recent days. He reiterated the bank’s well-known positions that the value of the CHF is high and its strength is to keep inflation low in Switzerland and that therefore the bank is willing to intervene in the currency markets and although there is no set level in which the bank intervenes.