USD/CHF Forecast – US Dollar Remains Buy on Dips Vs Swiss Franc

USD/CHF Forecast – US Dollar Remains Buy on Dips Vs Swiss Franc

  • – The US Dollar spiked higher and moved above the 0.9710 resistance against the Swiss Franc.
  • – There is a major bullish trend line with support at 0.9690 forming on the hourly chart of the USD/CHF pair.
  • – Today in Switzerland, the Consumer Price Index for July 2017 was released by the Swiss Federal Statistical Office.
  • – The outcome was around the forecast, as there was a decline of 0.3% in the CPI compared with the previous month.

 

Swiss CPI

Today in Switzerland, the Consumer Price Index for July 2017 was released by the Swiss Federal Statistical Office. The market was expecting the CPI to decrease by 0.3% compared with the previous month.

 

The actual result was around the forecast, as there was a decline of 0.3% in the CPI, which was more than the last -0.1%. In terms of the yearly change, there was an increase of 0.3%, which was more than the last 0.2%. The report added that:

The consumer price index (CPI) fell by 0.3% in July 2017 compared with the previous month, reaching 100.6 points (December 2015=100). Inflation was 0.3% compared with the same month of the previous year.

 

Overall, the USD/CHF remains supported on the downside near 0.9700 and 0.9690 for more gains.

 

USD/CHF Technical Analysis

The US Dollar mostly traded in a range below the 0.9700 level against the Swiss Franc. Later, the USD/CHF pair gained bids and was able to break the 0.9700-0.9710 resistance area for an upside move above the 100 hourly simple moving average.

 

USD/CHF Technical Analysis US Dollar Swiss Franc

 

The pair traded as high as 0.9763 before it faced resistance and started correcting lower. It moved below the 38.2% Fib retracement level of the last wave from the 0.9670 low to 0.9763 high, but found support near 0.9710.

 

The 50% Fib retracement level of the last wave from the 0.9670 low to 0.9763 high is acting as a decent support. On the downside, there is a major bullish trend line with support at 0.9690 forming on the hourly chart of the USD/CHF pair.

 

As long as the pair is above the 0.9690 level and the 100 hourly simple moving average, it remains supported for more gains in the near term.

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