Key Points
- The US Dollar after trading towards 0.9960 against the Swiss Franc found support and moved higher.
- There is a contracting triangle pattern formed on the hourly chart of USDCHF with support at 1.00.
- Today, the Switzerland UBS Consumption Indicator report was released by the UBS.
- The result was better than the last reading, as there was a rise to 1.5 from 1.43 in Dec 2016.
USDCHF Technical Analysis
The US Dollar slowly started to move higher from the 0.9960 support against the Swiss Franc, and moved above 1.00. The USDCHF pair also managed to move above the 21 hourly simple moving average, and currently forming a contracting triangle pattern on the hourly chart with support at 1.00.
The pair is currently struggling to break the 1.0030 level, so there is a chance of a minor downside before it moves higher once again.
The 21 hourly SMA and the 1.00 support is a major barrier for sellers on the downside and can be considered as a buy zone.
Switzerland UBS Consumption Indicator
Today, the Switzerland UBS Consumption Indicator, which is a leading indicator of private consumption trends and an important component of Swiss GDP was published. The market was not looking for any increase from the last reading of 1.43.
However, the result was better, as there was a rise to 1.5 from 1.43 in Dec 2016. The report stated that the “UBS consumption indicator rose from 1.45 to 1.50 points in December due primarily to the strong year-end results of the Swiss automobile sector. Compared with the previous December, new car registrations were up by 8.2%”.
Overall, the triangle support area at 1.00 and the 21 hourly simple moving average holds a lot of value for USDCHF in the near term.
