Key Points
- The US Dollar made a downside move to test the 0.9600 support zone against the Swiss Franc.
- There was a break below a major bullish trend line 0.9665 on the hourly chart of USDCHF.
- Today in Switzerland, the Producer and Import Prices for June 2017 was provided by the Federal Statistical Office.
- The outcome was below the forecast, as there was a decline of 0.1% in the PPI compared with the previous month.
USDCHF Technical Analysis
The US Dollar after trading as high as 0.9696 stated a downside move against the Swiss Franc. The USDCHF pair traded lower and broke the 0.9650 support area and the 21 hourly simple moving average.
The pair also cleared a major bullish trend line 0.9665 on the hourly chart and currently recovering from the 0.9600 handle.
There is a bearish trend line with resistance at 0.9645 along with the 21 hourly simple moving average, which is acting as a barrier for more gains. Once the pair succeeds in a close above 0.9650 and the 21 hourly simple moving average, there can be a test of 0.9690.
Swiss Producer and Import Prices
Today in Switzerland, the Producer and Import Prices for June 2017 was provided by the Federal Statistical Office. The market was positioned for no change in the PPI compared with the previous month.
The actual result was below the forecast, as there was a decline of 0.1% in the PPI. Looking at the yearly change, the index declined by 0.1%, which was a lot lower compared with the last increase of 0.1%. The report added that:
This decline is due in particular to lower prices for scrap and products of wood. Compared with June 2016, the price level of the whole range of domestic and imported products fell by 0.1%.
Overall, the USDCHF pair may rise above 0.9650 in the near term to test the last swing high of 0.9690.
