Published On: Thu, Mar 2nd, 2017

USDCHF – Can US Dollar Break 1.0120 Vs Swiss Franc?

InstaForex

US dollar usdjpy usdchf

Key Points

  • The US Dollar recently traded higher but found resistance near 1.0120 against the Swiss Franc.
  • There is an important bearish trend line with resistance at 1.0120 on the hourly chart of USDCHF.
  • Today in Switzerland, the Gross Domestic Product for Q4 2016 was released by the Swiss Statistics.
  • The result was below the market expectation, as there was a rise of 0.1%, less than the forecast of 0.4%.

USDCHF Technical Analysis

The US Dollar remained in an uptrend against the Swiss Franc, and traded higher from the 1.0065 support and the 21 hourly simple moving average. The USDCHF pair is again testing highs, but struggling to break the 1.0120 resistance.

USDCHF Technical Analysis

The mentioned 1.0120 resistance is formed with an important bearish trend line on the hourly chart. The pair is currently moving down, but finding support near a bullish trend line at 1.0100.

The chances of the pair moving higher and breaking 1.0120 are high. The USD bulls need to gain pace for a push and take the pair towards 1.0150.

Swiss Gross Domestic Product

Today in Switzerland, the Gross Domestic Product for Q4 2016 was released by the Swiss Statistics. The market was expecting the total value of all goods and services produced by Switzerland to increase by 0.4% in Q4 2016, compared with the previous quarter.

The outcome was below the market expectation, as there was a rise of 0.1%. The yearly change was also lower with an increase of 0.6%, less than the last 1.4% (revised). The report stated that “Private and government consumption has had a positive impact, while investment in construction and equipment has fallen slightly. The trade balance has also curbed GDP growth. On the production side, healthcare and social work as well as financial services have boosted growth, while value added in manufacturing and energy production has declined. For 2016 as a whole, real GDP grew by 1.3%”

Overall, the US Dollar may rise against the Swiss Franc, but it has to clear the trend line resistance at 1.0120 for sustained upside move.

FXTimes

Leave a comment

XHTML: You can use these html tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>