USD/CHF has been non-volatile and impulsively bullish recently after breaking above the 0.9850 resistance area. Recently CHF has been quite negative with the economic reports which helped USD to gain momentum very well. Today CHF SECO Consumer Climate report was published with less deficit at -2 from the previous negative figure of -3 which was expected to be at 0 and Retail Sales report was published with negative value at -0.4% from the previous value of -1.0% which was expected to be positive at 0.3%. On the USD side, today USD Federal Funds Rate report was unchanged at 1.25% as expected as the Rate Hike is about to happen in December. Along with the Rate hike today USD Unemployment Claims report is going to be published which is expected to show an increase to 235k from the previous 233k, Prelim Non-Farm Productivity report is expected to publish with an increase to 2.5% from the previous value of 1.5%, Prelim Unit Labor cost is expected to increase to 0.5% from the previous value of 0.2%, Natural Gas Storage is expected to decrease to 63B from the previous figure of 64B and FOMC Member Powell and Dudley is going to speak about the key interest rates and future monetary policy which is expected to be neutral in nature. As of the current situation, USD has been relatively weak after the unchanged Federal Funds rate report today and it is currently expected that CHF might gain some momentum and push the price a bit downside for some retracement before the price bounces up.
Now let us look at the technical view, the price is currently showing some bearish intervention after the non-volatile bullish trend in place. As of the current scenario, the price has formed a Bearish Continuing Divergence which is expected to push the price lower towards 0.9850-0.9760 support area before proceeding further with the bullish move with the target towards 1.01 resistance area. As the price remains above 0.9760 the bullish bias is expected to continue further.
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