Key Points
- The US Dollar after a correction towards 0.9955 against the Swiss Franc found resistance and traded lower.
- The USDCHF pair is currently attempting to close below a bullish trend line on the hourly chart at 0.9900.
- Today in Switzerland, the Retail Sales report was released by the Swiss Federal Statistical Office.
- The result was on the lower side, as there was a decline of 3.5% in sales in Dec 2016, compared with the +0.5% forecast.
USDCHF Technical Analysis
The US Dollar recently traded as high as 0.9956 against the Swiss Franc where it found sellers and started moving down. The USDCHF pair is currently moving down and already broke the 50% Fib retracement level of the last wave from the 0.9861 low to 0.9956.
At the moment, the pair is below the 21 hourly simple moving average, and attempting a close below a bullish trend line on the hourly chart at 0.9900.
A close below the trend line support may ignite further losses in USDCHF, having the potential for a downside move towards 0.9860.
Swiss Retail Sales
Today in Switzerland, the Retail Sales report, which is a survey of goods sold in the last month was released by the Swiss Federal Statistical Office. The market was expecting a rise of 0.5% in Dec 2016, compared with the same month a year ago.
However, the result failed to meet the forecast, as there was a decline of 3.5% in sales in Dec 2016. The report added that “Turnover in the retail sector, adjusted for sales days and holidays, fell by 4.3% in nominal terms in December 2016 compared with the previous year. To put this into perspective, however, it should be noted that unadjusted turnover fell by only 0.7%”.
Overall, the US Dollar looks like set for a decline towards 0.9880 or 0.9860 against the Swiss Franc in the short term.
