Forex: USD/CHF surges to 0.9449/51 after GDP data in the EMU

The USD/CHF has moved higher Wednesday during European trading, establishing fresh highs at 0.9449/51 on the heels of economic data out of the EMU. The pair seems to be one of today’s top performers, securing a steadfast gain of +0.42% thus far.

In the EMU, Gross Domestic Product s.a. (QoQ) has contracted -0.6% in the fourth quarter, in line with expectations of -0.6% and down from -0.1% previously. In addition, Gross Domestic Product s.a. (YoY) has shrunk -0.9% in the fourth quarter, matching estimates which called for -0.9%.

The ICN.com Technical Analyst Team identifies the next means of resistive correction at the 0.9465, handle, up to the 0.9490 level, and ultimately 0.9515. Conversely, a prolonged retracement will eventually test supports at the 0.9400 barrier, onto the 0.9375, and 0.9350.

“The slight USD/CHF downside bias is limited above 0.9375, and accordingly we still see the bullish move valid especially with stability above 38.2% correction at the 0.9385 level.” notes the ICN.com analysts.