Key Points
- The US Dollar remained in an uptrend versus the Swiss Franc after a close above 0.9800.
- There is a monster bullish trend line formed on the 4-hours chart of the USDCHF pair, acting as an upside move catalyst.
- Today in Switzerland, the Producer and Import Prices was released by the Federal Statistical Office.
- The outcome was mixed, as there was a decline of 0.1% in Sep 2016, compared with Sep 2015.
USDCHF Technical Analysis
The US dollar recently climbed above the 0.9800 resistance against the Swiss Franc to clear the path for more gains. There is a monster bullish trend line formed on the 4-hours chart of the USDCHF pair, which is acting as a support on the downside at 0.9860.
On the upside, there is a chance of a new high as the pair may test the 1.236 extension of the last drop from the 0.9910 high to 0.9856 low.
As long as the pair is above the trend line support, one may consider buying near the 0.9870 support.
Switzerland Producer and Import Prices
Today, the Switzerland Producer and Import Prices, which is an indicator of consumer price inflation was provided by the Federal Statistical Office for Sep 2016.
The market was expecting a rise of +0.1% in Sep 2016, compared with the previous month. However, the result was mixed, as there was an increase of 0.3%. However, there was a decline of 0.1% in terms of the yearly change. The report stated that the “rise is due in particular to higher prices for petroleum products. Compared with September 2015, the price level of the whole range of domestic and imported products fell by 0.1%.”
Overall, it won’t be easy for the Swiss Franc buyers to gain pace, as a result, the USDCHF pair may continue to trade higher.
