USD/CHF erases daily gains, remains limited by 0.9470
|- Pair back to the 0.9450 after being rejected from 0.9480.
- SNB meeting on Thursday, FOMC next week.
USD/CHF is about to end the day with modest gains and far from the highs. The US dollar lost strength during the American session and pulled back trimming gains. The Swiss franc failed to rise clearly despite risk aversion.
Earlier today the pair bottomed at 0.9420/25 (6-day low) and rebounded sharply to the upside. It peaked after the release of US data at 0.9480. It found resistance at a downtrend line and recently dropped to 0.9445. The pair is hovering around 0.9450, up only 10 pips from yesterday’s close.
Data released today showed that US retail sales contracted 0.1% in February versus a 0.3% gain expected while core sales climbed 0.2%. The Producer Price Index rose 0.2% above the 0.1% of market consensus. The greenback fell after those numbers were released but quickly rebounded. On Thursday, the NY Empire Index, Jobless claims and the Philly Fed are due.
In Switzerland, the key event will be the Swiss National Bank decision. No change in rates is expected. The central bank will also release the Quarterly Bulletin.
Technical outlook
USD/CHF failed today to break a downtrend line at 0.9470/75 before retreating to 0.9445. The mentioned line continues to support a bearish short-term outlook. If the pair rises and holds on top of 0.9475, the greenback could rise further to test 0.9500.
To the downside, USD/CHF an uptrend line at 0.9430 supports the bullish outlook. A break below that line would expose immediately weekly lows at 0.9420 and then, the strong horizontal support at 0.9400/05.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.