USDCHF Looks Set For Next Leg Higher15 July, 2015 by Aayush Jindal in Fundamental Analysis, Market Analysis, Technical Analysis, USDCHF
- US Dollar after a mild correction against the Swiss Franc traded higher and looks set for more gains in the near term.
- There are many major releases lined up in the US today, including the PPI, industrial production and NY Manufacturing index.
- Chinese Gross Domestic Product (GDP) released by the National Bureau of Statistics of China posted an increase of 7% in Q2 2015, which was more than the forecast of 6.9%.
USDCHF Technical Analysis
The US Dollar recently traded towards 0.9400 against the Swiss franc where there was a support formed to prevent additional weakness. The pair managed to recover some losses and currently trading around the 50% Fib retracement level of the last drop from the 0.9530 high to 0.9397 low, i.e. acting as a hurdle for more gains.
Moreover, the pair trading around an important confluence area of the 100 and 200 simple moving averages. So, there is a chance that the pair might move a bit lower from the current levels. However, there is a bullish trend line formed on the hourly chart, which might act as a support if the pair moves lower from the current levels.
Earlier during the Asian session, the Chinese Gross Domestic Product (GDP), which studies the gross value of all goods and services produced by China was released by the National Bureau of Statistics of China. The forecast was lined up for an increase of 6.9% in the second quarter of 2015, compared with the same quarter a year ago. However, the outcome was above the forecast, as the Chinese GDP grew by 7%.
When we look at the quarter-over-quarter change, the Chinese Gross Domestic Product came in at 1.7% just as the market expected. The Chinese industrial production was also on the better side, as it posted a gain of 6.8%, more than the expectation of 6%.
In the US today, the Producer Price Index will be released by the Bureau of Labor statistics, Department of Labor. The forecast is of a 0.3% increase in June 2015, compared with the preceding month. If the outcome misses the forecast just like the retail sales the US Dollar might come under pressure in the near term.