The US Dollar (USD) fell against the Swiss Franc (CHF) on Friday, decreasing the price of USDCHF to less than even 0.9570 ahead of some key economic events. The long term technical bias has already turned bullish due to a Higher High and Higher Low in the recent wave on daily chart.
As of this writing, the pair is being traded around 0.9565. A hurdle may be noted near 0.9675, the 76.4% fib level ahead of 0.9800, the psychological number and then 0.9862, the swing high of the last major upside rally as demonstrated in the following daily chart.
On the downside, the pair is likely to find a support around 0.9560, the 61.8% fib level of the last major wave ahead of 0.9373, the 38.2% fib level and then 0.9150, the swing low of the last major dip. The technical bias will remain bullish as long as the 0.9150 support area is intact.
US Consumer Price Index
The US Bureau of Labor Statistics is due to release the Consumer Price Index report today during the early New York session. The report is considered a key gauge for inflation. According to the average forecast of different economists, the Consumer Price Index in the world’s largest economy remained 0.1% in June as compared to 0.0% in the same month of the year before. Generally speaking, higher CPI reading is considered positive for the US Dollar (USD) and vice versa thus a better than expected actual outcome will be seen as bullish for USDCHF.
Considering the overall technical and fundamental outlook, selling the pair around current levels appears to be a good strategy in short to medium term if we get a valid bearish pin bar or bearish engulfing candle on daily chart.
Trade global forex with the best ECN broker of 2021*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about making your money go further with FXOpen.
* FXOpen International, best ECN broker of 2021, according to the IAFT