USD/CHF hits highest levels in 6 weeks above 0.9500

• US Dollar rebounds on easing fears of a trade war. 
• Swiss franc weakens following ECB meeting. 
• Events ahead: Trump on tariffs and NFP. 

USD/CHF broke decisively above 0.9470 and jumped to 0.9518, hitting the strongest level since January 24. Near the end of the day, was hovering around 0.9510/15, headed toward the fourth gain in-a-row. 

The US dollar bottomed after the beginning of Draghi’s press conference. The ECB kept interest rates and the purchases program unchanged as expected. It removed from the statement the phrase of needing to increase/extend QE if conditions deteriorate. The rest of the statement was the same of the previous meeting. Forecasts changes were minor and Draghi mentioned that core inflation remains subdued. 

At the time EUR/USD peaked, USD/CHF was testing daily lows. But then, the euro reversed sharply and pushed the Swiss franc lower. EUR/CHF reversed from 1-month highs and pulled back to 1.1700 that decline limited a bit the rally of USD/CHF. 

Traders are awaiting an announcement from US President Trump on tariffs. Regarding data, the next key report will be released on Friday: the US official employment report. 

Technical levels 

The pair broke and consolidated above 0.9450, the area that capped the upside during February. It could signal more gained ahead for the US Dollar. The next strong area is seen at 0.9565/70, followed by 0.9600 and 0.9650, before the downtrend line at 0.9720/30. 

A reversal below 0.9450 could signal that USD/CHF is not yet ready for a sustained recovery. Below that level support is seen at 0.9395 and then at the 20-day moving average at 0.9365/70.