USD/CHF probing 50DMA at 0.9220, having rallied 100 pips since hot US inflation report
11.11.2021, 19:12

USD/CHF probing 50DMA at 0.9220, having rallied 100 pips since hot US inflation report

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

USD/CHF is currently consolidating either side of its 50-day moving average just under the 0.9220 mark, having rallied from Asia Pacific session lows around the 0.9180 mark. The move higher comes amid a continuation of broad USD strength as market participants continue to assess the implications of the latest US Consumer Price Inflation report, which showed the YoY rate of headline US CPI hitting its highest since November 1990 at 6.2% in October.

Thursday’s upside means the pair has now risen by nearly 100 pips from its just above 0.9120 levels prior to the data, a rally of about 1.0%. If USD/CHF can break to the north of its 50DMA at 0.9220, there is a balance area of some mid-October lows and highs around 0.9250 that could offer some resistance. Above that, a more notable area of resistance is just above 0.9300 level, where resides a triple top from early October.

Commentary from Swiss National Bank (SNB) policymakers has not had any noticeable impact on USD/CHF in the last few days. SNB Governing Board member Andrea Maechler has spoken publically on a few occasions over the past few days. She reiterated the bank’s well-known positions that the value of CHF is high and its strength is keeping inflation low in Switzerland and that the bank is thus willing to intervene in currency markets and though there is no set level at which the bank intervenes.

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