Key Points
- The US Dollar after forming support at 0.9890 against the Swiss Franc moved higher.
- The USDCHF pair broke a bearish trend line with resistance at 0.9945 on the hourly chart.
- Today in Switzerland, the Retail Sales for March 2017 (YoY) was released by the Swiss Federal Statistical Office.
- The outcome was above the forecast, as there was a rise of 2.1% in sales in March 2017, more than the forecast of 1%.
USDCHF Technical Analysis
The US Dollar slowly moved down this past week and traded towards 0.9900 against the Swiss Franc. The USDCHF pair later formed support at 0.9890 and moved above the 50% Fib retracement level of the last decline from the 0.9958 high to 0.9887 low.
The upside move was strong as the pair broke a bearish trend line with resistance at 0.9945 on the hourly chart and moved above the 76.4% Fib retracement level of the last decline from the 0.9958 high to 0.9887 low.
The pair is currently around the last swing high at 0.9950. So, it may correct a few pips lower before it makes an attempt to break 0.9960.
Swiss Retail Sales
Recently in Switzerland, the Retail Sales for March 2017 was released by the Swiss Federal Statistical Office. The forecast was lined up for the sales in March 2017 to increase by around 1%, compared with the same month a year ago.
The result was above the forecast, as there was a rise of 2.1% in sales in March 2017, more than the forecast of 1%. The last figure was also revised up from +0.6% to +0.7%. The report stated that “Adjusted for sales days and holidays, the retail sector excluding service stations showed a 1.5% increase in nominal turnover in March 2017 compared with March 2016 (in real terms +2.1%)”.
Overall, the USDCHF pair might dip a few pips towards 0.9940, but it remains supported for more gains in the near term.
