- – The US Dollar struggled a lot near 1.0099 against the Swiss Franc, and started a downside move.
- – The USD/CHF pair broke two important bullish trend lines at 1.0070 on the hourly chart to initiate a downside move.
- – Today in Switzerland, the Producer and Import Prices for April 2017 provided by the Federal Statistical Office posted a decline of 0.2%.
Swiss Producer and Import Prices
In Switzerland today, the Producer and Import Prices for April 2017 was provided by the Federal Statistical Office. The market was positioned for the Index to post no major change from the last increase of 0.1%.
However, the result was on the lower side, as the Producer and Import Prices declined by 0.2% in April 2017, compared with the previous month. In terms of the yearly change, there was a rise of 0.8%, which was lower than the last 1.3%. The report added that the “Producer and Import Price Index fell in April 2017 by 0.2% compared with the previous month, reaching 100.1 points (base December 2015 = 100). This decline is due in particular to lower prices for petroleum products and machinery”.
Overall, the market sentiment is bearish for USD/CHF and may ignite more declines towards 0.9950-40 in the near term.
USD/CHF Technical Analysis
The US Dollar was in nasty uptrend, as it moved above 1.0050 against the Swiss Franc. The USD/CHF pair traded close to the 1.0100 level at 1.0099, and started a downside move with a break below the 21 hourly simple moving average.
The pair declined and broke two important bullish trend lines at 1.0070 on the hourly chart. Later, the pair cleared the 38.2% Fib retracement level of the last wave from the 0.9858 low to 1.0099 high.
At the moment, the pair is trading near a major support at 0.9980-70. The stated level was a resistance earlier, and now acting as a support along with the 50% Fib retracement level of the last wave from the 0.9858 low to 1.0099 high. However, it is very likely that the pair will break 0.9970 soon for further declines towards 0.9950, which is near the 61.8% Fib retracement level of the last wave from the 0.9858 low to 1.0099 high. Overall, more losses are likely once there is a break below 0.9970.Tags: Swiss Franc, US Dollar, USD/CHF Technical Analysis