US Dollar is trading with a bullish tone against the Swiss Franc and possibly setting up for an upside break.
There is a major resistance area formed near 0.9680, which can be seen as a short term breakout area.
Today, the US Industrial Production will be released by the Board of Governors of the Federal Reserve, which is forecasted to decline by 0.1% in March 2016.
Recently, the US Consumer Price Index released by the US Bureau of Labor Statistics posted a disappointing reading of 0.9% vs the forecast of 1.2% in March 2016.
USDCHF Technical Analysis
The US Dollar after a declining streak against the Swiss Franc finally started catching bids this week and traded higher. The USDCHF pair traded above the 0.9630 resistance area and currently setting up for a break above 0.9680.If the pair breaks the highlighted resistance area, then there is a chance of a move above the 0.9700 level in the near term.On the downside, there is a bullish trend line formed on the hourly chart, which can act as a support area for the pair.
US CPI
Yesterday, the US Consumer Price Index report was released by the US Bureau of Labor Statistics. The market was expecting the retail prices of a representative shopping basket of goods and services to increase by 1.2% in March 2016, compared with the previous month.However, the outcome was disappointing, as there was a rise of 0.9% in March 2016. Moreover, when we look at the monthly change, then the Consumer Price Index rose 0.1%, which was again on the lower side.The report added that the “food index fell 0.2 percent after rising in February, as five of the six major grocery store food groups declined. The energy index rose for the first time since November, with all of its major components except natural gas increasing“.The US Dollar was seen trading down after the release against most major currencies.
US Industrial Production
Today in the US, the Industrial Production, which provides data of the volume of production of US industries such as factories and manufacturing will be released by the Board of Governors of the Federal Reserve. The forecast is slated for a decline of 0.1% in March 2016, compared with the previous month.Let us see if the outcome comes negative or positive, as it may impact the course of the US Dollar in the near term.
If the pair breaks the highlighted resistance area, then there is a chance of a move above the 0.9700 level in the near term.On the downside, there is a bullish trend line formed on the hourly chart, which can act as a support area for the pair.
The report added that the “food index fell 0.2 percent after rising in February, as five of the six major grocery store food groups declined. The energy index rose for the first time since November, with all of its major components except natural gas increasing“.The US Dollar was seen trading down after the release against most major currencies.