USD/CHF extends rally to fresh 17-month highs above 1.0080

• Broad-based USD strength continues to fuel the pair’s upsurge.
• Today’s data from the U.S. show a higher-than-expected growth in private sector employment.
• US Dollar Index looks to end the day above 97.

The USD/CHF pair’s unabated rally continues on Wednesday with the greenback gathering further strength on upbeat macroeconomic data releases. As of writing, the pair was trading at its highest level since May 2017 at 1.0084, adding 0.3% on a daily basis.

The US Dollar Index, which closed the first two days of the week sharply higher, looked like it was about to go into a consolidation phase near the 97 handle earlier in the day. However, the ADP employment report revealed that private sector employment increased by 227K on a monthly basis in September to beat the market expectation of 189K and woke the USD bulls up. The DXY rose to a fresh 2018 high at 97.20 in the early trading hours of the NA session and was last seen at 97.17, where it was up 0.17% on the day. Additionally, the U.S. Bureau of Labor Statistics announced that the employment cost index rose 0.8% in the third quarter.

Additionally,  the Swiss National Bank (SNB) Chairman Thomas Jordan said that Switzerland was likely to be among countries  worst hit by the trade-war and added that trade-war tensions could lead to tighter monetary policy. Nevertheless, these comments didn’t receive a noteworthy reaction from the markets. Earlier today, the ZEW survey showed that the Expectations Index in Switzerland fell to -39.1 from -30.8.  

Technical levels to consider

1.0100 (psychological level) could be seen as the next target for the pair. With a clean break above that level, 1.0170 (Mar. 7, 2017, high) could act as the next technical resistance.  On the downside, supports are located at 1.000 (parity), 0.9955 (20-DMA) and 0.9850 (Oct. 15 low).