USD/CHF jumps above 0.9150, outlook turns positive
- USD/CHF is having the best day in more than a month.
- DXY rises above 94.00, to the highest in four weeks.
The USD/CHF is rising for the fourth consecutive day on Thursdays. It accelerated the move higher after the European Central Bank (ECB) meeting. It is trading at 0.9165, at the highest level since October 19.
The greenback remains strong across the board as market participants remain on caution mode. The DXY rose above 94.00, to the highest level in four weeks. Economic data from the US, came in better-than-expected, showing a decline in jobless claims and record growth during the second quarter.
The Swiss franc weakened further versus the US dollar following the European Central Bank decision and Lagarde’s press conference. Analysts at Wells Fargo point out Lagarde, and the accompanying comments “were notably dovish in tone, offering a very clear signal of further easing in December.”
Technical outlook
The USD/CHF climbed 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 higher could lead to a test of the 0.9200 level. Already a close around current levels would reinforce the, now bullish, short-term outlook. A slide back under 0.9120 would alleviate the bullish pressure, exposing the next support at 0.9085.