Forex: USD/CHF rides back to daily highs

The USD/CHF went back to its highs right after the publication of US ISM non-manufacturing PMI. There is a broader demand for the greenback once investors noticed stronger non-manufacturing figures in the US in February instead of the expected drop to 55.0. Data rose from 55.2 to 56.0. The USD/CHF is back above 0.9420.

The ISM non-manufacturing PMI rose from 55.2 to 56.0 in February, instead of dropping to 55.0 as expected, surprising investors positively. Also out was the March IBD/TIPP Economic Optismism (MoM) that was expected to drop from 47.3 to 46.3, but actual data disappointed investors with the figure of 42.2.

“USD/CHF has broken its key resistance area defined by its declining channel and 0.9389 (18/01/2013 high)”, wrote MIG Bank analyst Bijoy Kar, pointing to resistance at 0.9513 (13/11/2012 high), while hourly supports can be found at 0.9352 (01/03/2013 low) and 0.9281 (28/02/2013 low).