- Summary:
- The USD/CHF pair has bounced back after being in consolidation in the past 2 days. What will happen next to the Swiss franc?
The USD/CHF price rose today after the relatively disappointing Swiss consumer price index data and the overall strong US dollar. The USDCHF is trading at 0.8918, which is higher than this week’s low of 0.8882.
Swiss CPI data: This week, we received mixed economic numbers from Switzerland. On Monday, the country’s statistics office said that the country’s unemployment rate rose from 3.5% in December to 3.7%. That was worse than the expected decrease to 3.4%.
And today, data by the statistics office said that the overall consumer price index (CPI) declined by 0.5% in January after dropping by 0.8% in the previous month. These numbers show that the country has a long way to get to the SNB target of 2%.
The USD/CHF price is also rising because of the strong dollar today. The dollar index has risen by more than 0.25% today after falling for the past few consecutive days.
USD/CHF technical outlook
On the four-hour chart, the USD/CHF price is at an important level. It is trading at 0.8925, which is the same level where it found strong resistance in December and January. The price is also at the important ascending pink trendline that connects the lowest levels in January. Therefore, in my view, the price may still resumes the downward trend that started on February 4 when it reached a high of 0.9046. This trend will be invalidated if it moves above 0.8950.
USDCHF Chart
