USD/CHF rises to 0.9940, erases Wednesday’s losses

• US Dollar Index rises above mid-94 on Thursday.
• Today’s data releases from the United States fall short of expectations.
• Wall Street trades mixed.

The USD/CHF pair gained traction on Thursday and rose to a fresh daily high at 0.9940 to erase all of the losses that it suffered on Wednesday. As of writing, the pair was trading at 0.9930, up 0.12% on the day.

The pair’s price action today seems to be driven by the market’s greenback valuation. Despite some disappointing macroeconomic data releases from the United States, the US Dollar Index advanced to 94.73 and was last seen consolidating its daily gains near 94.60 where it was up 0.4% on a daily basis. A broad-based selling pressure witnessed on the euro following ECB President Draghi’s press conference grabbed USD bulls’ attention.

Furthermore, White House economic advisor Larry Kudlow said that he was expecting a ‘big’ GDP growth number on Friday, ramping up the expectations for a positive reading and providing an additional boost to the greenback.

However, major equity indexes in the U.S. struggle to extend their recent gains on Thursday and trade mixed to suggest that the risk-on mood, which benefits safe-havens like the CHF, is not yet dominating the markets. Although the Dow Jones Industrial Average is up 0.4% on the day, the S&P 500 is losing 0.1%.

Technical outlook

The pair could face the first support  at 0.9900 (Jul. 23 low/daily low/psychological level) ahead of 0.9855 (Jul. 9 low) and 0.9820 (Jun. 14 low). On the upside, resistances are located at 0.9945 (20-DMA), 1.0000 (psychological level/parity), and 1.0065 (Jul. 13 high).