Key Points
- The US Dollar recently managed to trade higher and broke the 1.0155 resistance area.
- The USDCHF pair also managed to break a bearish trend line at 1.0155 on the hourly chart to open the doors for more gains.
- Today, the Swiss Retail Sales report was released by the Swiss Federal Statistical Office.
- The result was better, as there was a rise of 0.9% in sales in Nov 2016, compared with the forecast of 0.4%.
USDCHF Technical Analysis
The US Dollar after trading as low as 1.0087 against the Swiss Franc found buyers and traded higher. The USDCHF pair traded above the 23.6% Fib retracement level of the last decline from the 1.0335 high to 1.0087 low.
Later, the pair also broke a bearish trend line at 1.0155 on the hourly chart along with the 21 hourly simple moving average to clear the way for more gains.
The pair is currently struggling near the 38.2% Fib retracement level of the last decline from the 1.0335 high to 1.0087 low. So, there is a chance of a minor dip before the pair continues to move higher.
Swiss Retail Sales
Today during the London session, the Swiss Retail Sales, which is a survey of goods sold in the last month was conducted by the Swiss Federal Statistical Office. The market was aligned for a 0.4% rise in sales in Nov 2016, compared with the same month a year ago.
The result was better, as there was a rise of 0.9% in sales in Nov 2016. The report added that “Real growth takes inflation into consideration. Compared with the previous month, real, seasonally adjusted retail trade turnover registered an increase of 0.7%”.
Overall, it looks like the USDCHF pair may dip once towards the 1.0155 area before it can attempt to trade higher towards 1.0200.
