USD/CHF approaches 8-month highs

USD/CHF regained the parity level and climbed to near Wednesday’s highs,as the dollar benefitted from US data and Fed’s Yellen comments.

USD/CHF found support at the 0.9990 area and resumed the advance, añthough it has lacked momentum to break above the 8-month peak set the previous day at 1.0055. At time of writing, the pair is trading at 1.0045, up 0.31% on the day.

Janet Yellen said Thursday that an increase in interest rates “could well become appropriate relatively soon”, data released minute later helped the case. US consumer price index rose 0.4% in October and 1.6% YoY, versus 0.3% and 1.6% expected respectively. The core CPI rose 0.1% MoM  and 2.1% YoY. Separated data showed housing starts rose 25.5% to a 9-year high of 1.323 million in October. 

USD/CHF levels to consider

In terms of technical levels, next resistances could be faced at 1.0055 (Nov 16 high), 1.0092 (Mar 10 high) and 1.0193 (Feb 3 high). On the flip side, supports are seen at 0.9982 (Nov 16 low),  0.9927 (Nov 15 low) and 0.9883 (10-day SMA).