Key Points
- The US Dollar remained in an uptrend against the Swiss Franc, and broke the 1.0060 resistance.
- There are a couple of bearish trend lines aligned at 1.0100 on the hourly chart of USDCHF, which may act as a resistance.
- Recently in the US, the Producer Price Index for Jan 2017 was released by the Bureau of Labor statistics, Department of Labor.
- The result was above the forecast, as the Producer Price Index increased by 0.6% in Jan 2017, more than the forecast of +0.3%.
USDCHF Technical Analysis
The US Dollar made a nice upside move against the Swiss Franc recently, breaking the 1.0050 and 1.0060 resistance levels. The USDCHF pair is currently above the 21 hourly simple moving and heading towards the last swing high at 1.0085.
There are high chances of the pair breaking it, and creating a new high around 1.0100. On the upside, the next resistance is around 1.0100, as there are a couple of bearish trend lines positioned.
Any dips from the current levels towards the 21 hourly SMA at 1.0060 might be considered as buying opportunity in the near term.
US PPI
Recently in the US, the Producer Price Index, which measures the average changes in prices in primary markets of the US by producers of commodities was released for Jan 2017 by the Bureau of Labor statistics, Department of Labor. The market was expecting a rise of 0.3% in Jan 2017, compared with the previous month.
The result was better than the forecast, as the US PPI increased by 0.6% in Jan 2017. The report added that “In January, over 60 percent of the advance in the final demand index is attributable to a 1.0-percent increase in prices for final demand goods. The index for final demand services moved up 0.3 percent”.
Overall, the USDCHF pair may look to extend gains towards 1.0100 or even above it for a test of 1.0120.
