The Swiss Franc, which was put under pressure by the SNB Chair’s comments earlier in the week, saw itself under pressure from the remarks of the European Central Bank (ECB) Chair this Thursday at the press conference following the rate statement. The Swiss franc weakened against the greenback after Christine Lagarde’s dovish comments that opened the door for further easing at its December meeting.
The greenback also got a massive boost as the US economy grew by the highest amount on record in the 3rd quarter, posting a GDP figure of 33.1% (annualized), versus the consensus of 32.0%. This further boosted demand on the US Dollar, which has seen hefty bids since Wednesday.
The USDCHF is currently trading at 0.91695.
Technical Outlook for USDCHF
The V-shaped recovery on the pair was enhanced by the response of today’s candle to the most massive growth of the US economy on record. The 0.71% gain in today’s candle (as at writing) has taken out the 0.91361 resistance level, with 0.91533 currently being challenged. A 3% penetrating close above this support by today’s candle would be enough to confirm a breakout. This move opens the door towards 0.91899, with additional targets seen at 0.92264 and 0.92554.
On the flip side, failure to confirm the break above 0.91533 allows for a pullback that could retest the support levels at 0.90809 and 0.90629. 0.91361 may serve as a pitstop for this move.