FXstreet.com (Barcelona) - The dollar is extending its four-day rally versus the Swiss franc, setting a fresh five-day high at 1.0267 as investors took positions before the release of Switzerland's production and import price index at the opening of the European session. The par is currently trading at pre-PPI-release levels around 1.0244.
On the day, the pair has gained around 60 pips from its opening price of 1.0186, a jump good enough to break above the MA-55 on the daily charts. Today's earnings extend the dollar's multi-day rally after having fallen for almost two-weeks from a 1.0509 high on December 23.
The estimated test of key resistance range levels has been confirmed with signs of conditions for implementation of the pre-planned short positions, said Igor Kulaga, analyst for Forex Lt. Nevertheless, at this point, considering some preservation of bullish momentum, we can assume probability of further rate correction period with another test of Senkou Span B line of Ichimoku cloud at 1,0240/60, where it is recommended to evaluate the development of the activity of both parties in accordance with the charts of a shorter time interval.
The Swiss PPI for December was slightly below market expectations at 0.1% compared to the forecasts of 0.2% for the month-over-month while in yearly terms it was the expected -2.5%.