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USDCHF Analysis – US Dollar Consolidates Above Key Levels

  • The US Dollar surged higher and broke the 1.00 resistance against the Swiss Franc.
  • The USDCHF pair traded as high as 1.0098 where it faced sellers and currently trading in a range above the 1.0050 support.
  • The US Consumer Price Index for April 2017 released by the US Bureau of Labor Statistics posted an increase of 2.2%, less than the last 2.4%.

USDCHF Technical Analysis

The US Dollar enjoyed nasty gains against the Swiss Franc and moved above the 1.0000 and 1.0020 resistance levels.

The USDCHF pair traded as high as 1.0098 where it faced offers and started correcting lower. It moved down and broke the 23.6% Fib retracement level of the last wave from the 0.9976 low to 1.0098 high.

However, the downside move found support near 1.0050, which also coincides with the 38.2% Fib retracement level of the last wave from the 0.9976 low to 1.0098 high.

USDCHF Hourly Chart

USDCHF Technical Analysis

The pair started trading in a range above 1.0050, and may make the next move soon.

On the upside, a break above 1.0098 could take the pair towards 1.0120 or even 1.0140.

On the downside, a break of 1.0050 might call for an extended correction towards the 1.0020 level, which also represents the 61.8% Fib retracement level of the last wave from the 0.9976 low to 1.0098 high.

US Consumer Price Index

Today in the US, the Consumer Price Index for April 2017 was released by the US Bureau of Labor Statistics. The market was expecting the Consumer Price Index to increase by around 2.4% in April 2017, compared with the same month a year ago.

The actual result was lower than the forecast, as the US CPI increased 2.2%, less than the last 2.4%. In terms of the monthly change, there was a rise of 0.2%, which was in line with the forecast.

The report added that:

Increases in indexes for shelter, energy, tobacco, and food all contributed to the monthly increase in the all items index. The energy index rose 1.1 percent, with all 3 of its major component indexes rising. The food index rose 0.2 percent, mostly due to a sharp increase in the index for fresh vegetables.

Overall, the USDCHF pair may move down a few pips, and may even attempt a break of the 1.0050 support.

About Aayush Jindal 109 Articles
With over 10 years of experience and still counting, Aayush posses great technical and fundamental analysis skills in the Forex, Cryptocurrency and Financial Markets. His Analysis are well-know and famous for engaging with viewers easily. He is from IT background with a lot of passion in the Forex and Cryptocurrency Arena.


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