Today, USDCHF is trading 0.68% higher at 1.0016 after reaching fresh 3-month high of 1.0026.
Earlier today, softer than expected Swiss inflation readings helped to weaken the CHF as the year over year reading showed that inflation increased by 0.1% and below the forecast of 0.3% by economists. The monthly reading came in at -0.1% and below expectations of 0.1% in September. On the other hand, weak ADP employment data from the US for September didn’t influence the pair. Nor did the weakening stock markets, which tend to boost the Swiss Franc at times of stock market turmoil.
USDCHF continues to trade inside an ascending channel from August 13 with daily corrections down to the lower band of the channel. The positive momentum of the pair accelerated after the pair crossed the 100-day moving average. On the upside, the first resistance level stands at 1.0026, the daily high, while a break above will drive prices up to 1.0097, the high from May 26. On the downside, immediate support stands at the daily low of 0.9920, while more bids will emerge at 0.9889, the 100-day moving average.Download our latest quarterly market outlookfor our longer-term trade ideas.
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