The US dollar opened this week with a gap higher against the Swiss Franc, and it looks like the USDCHF is heading further higher may be towards 0.9840.
USDCHF Weekly Analysis – Dollar Opens Higher Vs Swiss Franc
· The US Dollar after trading lower towards 0.9680 against the CHF found support.
· There are a couple of bullish trend lines on the downside, which prevented the downside move at 0.9680.
· Today, the Swiss Consumer Price Index, issued by the Swiss Federal Statistical Office posted a decline of 0.2% in Oct 2016.
USDCHF Technical Analysis
The US Dollar weakened this past week versus the Swiss Franc to trade towards 0.9680. However, the USDCHF pair opened with a gap higher this week, as there was news related to the US presidential election, giving lead to Hillary Clinton.
The pair started recovering from a couple of bullish trend lines formed on the daily chart of USDCHF at 0.9680. The pair during the recent upside broke the 23.6% Fib retracement level of the last drop from the 0.9998 high to 0.9680 low.
So, there is a chance of the pair gaining strength and moving further higher towards the 50% Fib retracement level of the last drop from the 0.9998 high to 0.9680 low at 0.9840. However, the US dollar buyers currently need to clear the 100-day simple moving average for an upside move.
Trade Idea – If you are looking to enter a buy trade, then consider it with a break and close above the 100-day SMA and with a stop of around 30-40 pips.
Today, the Swiss Consumer Price Index report was issued by the Swiss Federal Statistical Office. The market was aligned for a decline of 0.2% in the average price change for all goods and services purchased by households for consumption purposes in Sep 2016, compared with Sep 2015.
The result was as forecasted, and in terms of the monthly change there was a rise of 0.1%. The outcome was not encouraging. So, there is a chance of the USDCHF pair trading higher towards 0.9840. Also, the market sentiment is favoring the US Dollar, calling for more gains in USDCHF.