USD/CHF soars to test March highs on US data and SNB’s Maechler comments

• Swiss Franc, worst performer among majors. 
• US Dollar extends gains after US data.
• USD/CHF testing March highs, a key technical level.

The USD/CHF pair is having the best day in weeks. Recently reached a 1-week high at 0.9561 before puling back to 0.9535. The short-term bullish tone remains intact but it is facing a strong resistance. 

The US dollar is up across the board and recently extended gains following the release of US data. The second estimate of Q4 GDP growth exceeded expectations and came in at 2.9% against the 2.7% expected and above the 2.5% of the previous estimate. The greenback was already higher and after the report rose further. 

The Swiss franc is under pressure. Save haven assets are the worst performer so far on Wednesday: gold was falling more than $10/oz while the yen was also posting losses. Comments from Swiss National Bank board member, Andréa Maechler, added to Swiss Franc weakens. She mentioned that the Swiss franc is still overvalued and even stronger in recent month. Regarding monetary policy, according to her, low inflation offers no reason for a change. She added that a premature rate hike could be counterproductive for the economy. 

Her comments fueled the rally of EUR/CHF that reached 1.1800 for the first time since mid-January. 

USD/CHF levels to watch 

The rally of the pair was capped today by the 0.9560 zone, a key resistance. A break higher would clear the way for 0.9600, above the next resistance might lie at 0.9630. On the flip side, support levels now are seen at 0.9510/15, 0.9455 (Mar 28 low) and 0.9430 (Mar 26 & 27 low).