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Dollar Looks to Extend Gains against the Swiss Franc

Dollar

The U.S. dollar is looking to extend its gains against the Swiss franc. The greenback has found support from the nomination of Federal Reserve Chair Jerome Powell to a second term and rising Treasury yields.

This has taken the USD/CHF Forex pair towards a falling trend line in play since early April. There is also a rising trend line in play since 9 November in play in this currency exchange rate.

Today’s economic calendar kicks into high gear before the U.S. Thanksgiving Day holiday on Thursday. The U.S. Federal Reserves preferred measure for inflation will be published. This is the monthly core and headline PCE price inflator.

The U.S. Labor Department’s weekly initial and continuing jobless claims will also be of interest with currency traders. The University of Michigan will release their monthly consumer expectations. The United States will also release key monthly core and headline durable goods orders.

Germany, the euro area’s largest economy, will feature the monthly Ifo business and consumer expectations surveys. Also on the economic data calendar, the United Kingdom is publishing the monthly CBI industrial trends survey.

Daily US Dollar Technical Analysis

Looking at the above daily MT 4 chart, the technical indicators do favor possible more gains for the U.S. dollar. This could send above the first upside barrier in play at 0.9340.

A daily close above 0.9340 opens the door for the dollar to challenge the technical resistance at last month high price point. This upside barrier is at 0.9368. The 2021 high price point, set in April, lines up at 0.9475.

On the downside, immediate technical support lines up at 0.93. The next downside barrier lines up at 0.9230.  The July high price level lines up at 0.9275 with the fifty (50) day simple moving average then coming into focus. This layer of support lines up near 0.9230.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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