Key Points
- The US Dollar remains in an uptrend above the 0.9700 handle against the Swiss Franc.
- There is an ascending channel pattern with support at 0.9720 forming on the hourly chart of the USDCHF pair.
- Recently in Switzerland, the Producer and Import Prices for July 2017 was released by the Federal Statistical Office.
- The outcome was below the forecast of 0.0%, as there was a decline of 0.1% (YoY).
USDCHF Technical Analysis
The US Dollar started rising from the 0.9600 support zone against the Swiss Franc. The USDCHF pair climbed above 0.9650, 0.9700 and the 21 hourly simple moving average to start a decent uptrend.
The pair recently traded as high as 0.9759 and currently correcting lower. There is an ascending channel pattern with support at 0.9720 forming on the hourly chart of the USDCHF pair.
The channel support is also near the 38.2% Fib retracement level of the last wave from the 0.9676 low to 0.9759 high. Therefore, the 0.9720-00 area can be considered as a buy zone in the short term.
Swiss Producer and Import Prices
Today in Switzerland, the Producer and Import Prices for July 2017 was released by the Federal Statistical Office. The market was positioned for no change in prices compared with the same month a year ago.
The actual result was below the forecast of 0.0%, as there was a decline of 0.1%. In terms of the monthly change, there was no change in the Producer and Import Prices compared with the last decline of 0.1%. The report added that:
This decline is due in particular to lower prices for scrap and products of wood. Compared with June 2016, the price level of the whole range of domestic and imported products fell by 0.1%.
Overall, the USDCHF pair remains supported above 0.9700 and might continue to move higher.
