Key Points
- The US dollar recently surged higher against the Swiss Franc and looks set for more gains.
- There was a crucial bearish trend line formed on the hourly chart of the USDCHF pair, which was surpassed by the bulls for an upside move.
- Today in Switzerland, the SECO Consumer Climate was released by the State Secretariat for Economic Affairs SECO.
- The outcome was positive, as instead of a decline in the index there was no change from -15 in Q3 2016.
Technical Analysis
The US dollar enjoyed a solid recovery against the Swiss Franc after trading as low as 0.9635. There was an upside thrust, as the USDCHF pair moved above a crucial bearish trend line formed on the hourly chart.
The pair looks like set to test the 1.618 extension of the last drop from the 0.9703 high to 0.9633 low where sellers may appear.
Overall, the pair remains in an uptrend and more gains looks feasible in the short term.
SECO Consumer Climate
Earlier today during the London session, the SECO Consumer Climate, which shows trends in Consumer Climate was released by the State Secretariat for Economic Affairs SECO.
The market is a decline in the index from -15 to -16 in Q3 2016. However, the result was stable, as there was no decline in the SECO Consumer Climate. Adding on the same, the report stated “Consumer sentiment remained unchanged between April and July 2016* and is now below the long-term average for the fifth quarter in a row. Most sub-indices also saw no major change, except regarding inflation, with the 1,200 or so individuals questioned expecting prices to rise more sharply over the next twelve months than they had in April”.
The Swiss Franc got no help from the result, and it may continue to slide versus the US Dollar in the short term.
