USD/CHF has been trading with higher volatility recently but managed to regain some bullish momentum after having bounced off the 0.9750 to 0.9850 support area. Recently, USD has been struggling to gain some momentum after the Rate Hike this month but due to recent worse economic reports from Switzerland USD gained some momentum recently. Today, Swiss Trade Balance report was published with an increase to 2.63B from the previous figure of 2.33B but failed to meet the expected result of 2.84B which affected the momentum of CHF against USD, leading to further bullish pressure in the pair. On the USD side, today Final GDP report was published with a slight decrease to 3.2% which was expected to be unchanged at 3.3%, Philly Fed Manufacturing Index was published with an increase to 26.2 from the previous figure of 22.7 which was expected to be at 21.5, Unemployment Claims report was published with an increase to 245k from the previous figure of 225k which was expected to be at 232k, and Final GDP Price Index report was published unchanged as expected at 2.1%. Moreover, US HPI report is yet to be published which is expected to increase to 0.4% from the previous value of 0.3%, CB Leading Index report is expected to decrease to 0.4% from the previous value of 1.2%, and Natural Gas Storage is expected to show greater deficit of -160B from the previous figure of -69B. To sum up, USD has been quite mixed with the economic reports today. Besides, upcoming economic reports are also forecasted to be very confusing as well. Though USD is currently the dominant currency in the pair, a further gain on the USD side is expected to be quite corrective and volatile in nature against CHF.
Now let us look at the technical chart. The price is currently holding above the support area of 0.9750-0.9850 and expected to push higher towards 1.0050 resistance area in the coming days. If the price closes above the dynamic level of 20 EMA with a daily close today, then impulsive bullish pressure can be expected in the coming days. Otherwise, the bullish pressure is expected to be quite volatile and corrective. As the price remains above 0.9750-0.9850 support area, the bullish bias is expected to continue further.
No comments:
Post a Comment