USDCHF Eyes Fed’s Yellen For Next Move

USDCHF Eyes Fed’s Yellen For Next Move

Key Highlights            

  • US Dollar declined heavily against the Swiss Franc this week and even moved below the 0.9900-0.9800 support area.
  • There was a support trend line formed on the daily chart, which was broken during the downside drift.
  • Today, there is a major event in the US, as Fed’s Yellen will testify that can set the US Dollar pace moving ahead.
  • On Thursday, the Swiss Consumer Price Index will be issued by the Swiss Federal Statistical Office, which is forecasted to decrease by 0.4% in January 2016.

USDCHF Technical Analysis

The US dollar nosedived during the past few days against the Swiss Franc, and looks set for more declines in the near term. There was a major support trend line formed on the daily chart, which was broken to ignite selling pressure on USDCHF.

USDCHF

The USDCHF pair also moved below the 100-day simple moving average, suggesting the fact that sellers are here to stay. The pair is currently trading near the 200-day SMA, and it would be interesting to see whether buyers manage to hold it or not moving ahead.

A break below the 200-day SMA might put a lot of pressure on buyers and could take the pair further down.

Fed’s Yellen Testimony

Today, there is a crucial event in the US, as Fed’s Yellen will testify. It has potential to ignite moves in the US Dollar. Any setback may call for more losses in the short term. So, we need to keep a close eye on her testimony. Moreover, the MBA Mortgage Applications report will also be released by the Mortgage Bankers Association later today.

Swiss Consumer Price Index

Tomorrow, there is a major release lined up in Switzerland, as the Consumer Price Index will be issued by the Swiss Federal Statistical Office. The CPI measures the average price change for all goods and services purchased by households for consumption purposes and is forecasted to decrease by 0.4% in January 2016, compared with the preceding month.

In terms of the yearly change, it is forecasted to decrease by 1.3%. Any major decline in the Swiss CPI may call for a pullback in the Swiss Franc. Let us see how the upcoming events affect the US Dollar and Swiss Franc moving ahead.



Mar