Key Points
- The US Dollar recovered well from the 0.9640 low against the Swiss Franc and moved above 0.9700.
- The USDCHF pair broke a short-term bearish trend line at 0.9705 on the hourly chart.
- Today, the Swiss Producer and Import Prices for May 2017 was provided by the Federal Statistical Office.
- The outcome was below the forecast of -0.1%, as the Producer and Import Prices declined by 0.3% (MoM).
USDCHF Technical Analysis
The US Dollar faced selling pressure yesterday and declined below 0.9660 against the Swiss Franc. Later, the USDCHDF pair recovered and moved above the 0.9690 resistance and the 21 hourly simple moving average.
The pair also managed to clear the 0.9700 resistance and a short-term bearish trend line at 0.9705 on the hourly chart. The pair is currently struggling to break the 0.9730-35 resistance and already tested the 23.6% Fib retracement level of the last wave from the 0.9641 low to 0.9736 high.
A break above the 0.9735-40 is needed for the US Dollar buyers to gain momentum above 0.9750 in the short term. On the downside, the broken trend line at 0.9705-00 may continue to provide support.
Swiss Producer and Import Prices
Recently in Switzerland, the Producer and Import Prices for May 2017 was provided by the Federal Statistical Office. The market was positioned for a decline of 0.1% in the PPI in May 2017, compared with the previous month.
The result was below the forecast of -0.1%, as the Producer and Import Prices declined by 0.3%. In terms of the yearly change, there was a rise of 0.1% in the PPI, which was also less than the forecast of +0.2%.
Overall, the USDCHF pair may soon break the 0.9740 resistance and trade towards the 0.9780 level in the near term.
