Key Points
- The US Dollar was seen under a bearish pressure vs the Swiss franc, and it is currently testing a major support area.
- There is a bullish trend line formed on the hourly chart of the USDCHF pair, which the bears are attempting a break.
- Swiss Gross Domestic Product, released by the State Secretariat for Economic Affairs SECO posted a rise of 0.7% in Q1 2016, which was lower compared with the forecast of 0.8%.
- In terms of the quarterly change, there was a rise of 0.1% in the Gross Domestic Product.
Technical Analysis
The US Dollar was seen weakening vs the Swiss Franc recently after trading as high as 0.9950. There was a sharp downside move, and the USDCHF pair is currently trading near a bullish trend line formed on the hourly chart.
The pair is below the 100 and 200 hourly simple moving average, which may ignite more losses. A break of the trend line support can take the pair towards 0.9860.
On the upside, the 200 hourly SMA may act as a resistance zone in the near term.
Swiss Gross Domestic Product
Today, the Swiss Gross Domestic Product, which is a measure of the total value of all goods and services produced by Switzerland was released by the Swiss Statistics. The market was expecting a rise of 0.8% in the GDP in Q1 2016, compared with the same quarter a year ago.
However, the outcome was a bit lower, as the Swiss GDP grew by 0.7%. Moreover, the report added that “Switzerland’s real gross domestic product (GDP) grew by 0.1% in the 1st quarter of 2016. GDP was underpinned by consumption expenditure from private households and investments in construction and equipment but curbed slightly by government consumption.”
The Swiss franc buyers were unfazed by the outcome, as the CHF was seen gaining pace vs most major currencies.
