USD/CHF supported at 0.9320, consolidates gains at 0.9340 area

• US dollar's reversal from 0.9350 area has been contained above 0.9320.
• The dollar consolidates gains after a four-day rally.
• Above 0.9356/69, the pair could accelerate the uptrend towards 0.9473 – Credit Suisse.

The US dollar is consolidating gains around 0.9340 on Thursday after a four-day rally from 0.9240. The pair’s pullback from 5, ½-month highs  0.9365 has been contained above previous highs at 0.9320/30 in a choppy trading session.

US dollar's rally loses steam

The greenback is hesitating after having appreciated beyond 1% over the last four days, buoyed by the rally in US bond's yields amid market expectations that the Federal Reserve might start tapering bond purchases as early as November.

The souring market mood on Thursday’s American Session, with stock markets turning negative after a positive opening, is weighing on the USD, in favor of the safe-haven Swiss Franc.

Furthermore, the economic calendar has not been particularly dollar-supportive. Weekly jobless claims increased for the third consecutive time on the week of September 25, with 362,000 new applications, while the second quarter’s US Gross Domestic Product was revised up to a 6.7% increase from the previous 6.6% estimation.

USD/CHF: Breach of 0.9356/69 resistance will open the path to 0.9473 – Credit Suisse

The pair is now capped below important resistance at 0.9356/69 which, according to Credit Suisse’s FX Analysis Team, would open the path to 0.9473: “It’s worth reiterating that there is little in the way of meaningful resistance if a breakout above 0.9356/69 is seen until the .9473 high, which suggests we could see a sharp acceleration in momentum.”

Technical levels to watch