USD/CHF – US Dollar Upsides Capped By 0.9560 Vs Swiss Franc
Aayush Jindal
Key Highlights
The US Dollar after a strong decline towards 0.9440 against the Swiss Franc started a recovery.
There is a crucial bearish trend line with resistance at 0.9560-70 forming on the 4-hours chart of USD/CHF.
Today in Switzerland, the UBS Consumption Indicator for June 2017 released by UBS posted a rise from the last revised reading of 1.32 to 1.38.
Later today, the US New Home sales figure for June 2017 will be released, which is forecasted to increase by 1.4% (MoM).
USDCHF Technical Analysis
The US Dollar after a decline towards 0.9440 against the Swiss Franc found support. The USD/CHF pair is recovering, but facing a major resistance on the upside near 0.9560-70.At the moment, the pair is near the 50% Fib retracement level of the last decline from the 0.9620 high to 0.9438 low. On the upside, there is a crucial bearish trend line with resistance at 0.9560-70 forming on the 4-hours chart.Below the trend line, the 61.8% Fib retracement level of the last decline from the 0.9620 high to 0.9438 low is at 0.9551. Therefore, it seems like there is a major resistance forming near 0.9560.Above the trend line resistance and 0.9570, the 100 simple moving average (H4) sits at 0.9595. So, there are clearly many resistances on the upside starting with 0.9560 up to 0.9600. On the downside, supports are at 0.9500 and 0.9480.
UBS Consumption Indicator
Today in Switzerland, the UBS Consumption Indicator for June 2017 was released by UBS. The market was positioned for no major increase in the index from the last reading.However, the result was better, as there was a rise from the last revised reading of 1.32 to 1.38. One of the main factors for a low reading was weak growth in employment. The last reading was also revised down to 1.32.The report added that:
Relatively weak growth in employment was much to blame for the lackluster number, however this was offset somewhat by robust new car registrations data and overnight hotel stays by Swiss nationals.
Overall, the USD/CHF pair may continue to correct higher, but it won’t be easy for buyers to clear the 0.9560-70 resistance.
At the moment, the pair is near the 50% Fib retracement level of the last decline from the 0.9620 high to 0.9438 low. On the upside, there is a crucial bearish trend line with resistance at 0.9560-70 forming on the 4-hours chart.Below the trend line, the 61.8% Fib retracement level of the last decline from the 0.9620 high to 0.9438 low is at 0.9551. Therefore, it seems like there is a major resistance forming near 0.9560.Above the trend line resistance and 0.9570, the 100 simple moving average (H4) sits at 0.9595. So, there are clearly many resistances on the upside starting with 0.9560 up to 0.9600. On the downside, supports are at 0.9500 and 0.9480.
The report added that: