Key Points
- US Dollar faced a lot of offers recently against the Swiss Franc and traded lower.
- There is a bearish trend line formed on the hourly chart of the USDCHF pair, which is acting as a downside move catalyst.
- In Switzerland, the Retail Sales conducted by the Swiss Federal Statistical Office was released during the London session.
- Swiss Retail Sales posted a decline of 1.3% in April 2016, which was disappointing, but had no major impact on the CHF.
Technical Analysis
The US Dollar traded down vs the Swiss Franc recently and lost a lot of ground. There was a close below the 0.9600 level as well, and a bearish trend line formed on the hourly chart of the USDCHF pair is acting as a resistance for a recovery.
The pair recently failed near the 50% Fib retracement level of the last drop from the 0.9646 high to 0.9567 low, so there is a chance of a new low below 0.9565.
Selling rallies can be opted as long as the USDCHF pair is below the trend line and resistance area.
Swiss Retail Sales
Today during the London session, the Swiss Retail Sales, which is a survey of goods sold in the last month and serves as an indicator of the Swiss consumer demand, conducted by the Swiss Federal Statistical Office posted a decline of 1.3% in April 2016, compared with the same month a year ago.
Overall, the report was negative, and the official release highlighted that “Adjusted for sales days and holidays, the retail sector excluding service stations showed a 2.1% decrease in nominal turnover in March 2016 compared with March 2015 (in real terms -1.4%)”.
The Swiss franc was not hit after the report, as it continued to gain ground against the US Dollar and may continue to rise.
