USD/CHF Tests 0.9800 on Mixed US Data

USD/CHF Tests 0.9800 on Mixed US Data

17 May 2016, 15:13
Roberto Jacobs
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USD/CHF Tests 0.9800 on Mixed US Data

The greenback's rebound from lower levels intensified after the release of upbeat US CPI for April, lifting the USD/CHF pair beyond 0.9800 handle.

The pair accelerated its up-move to 0.9804 after the US CPI printed above expectation figure of 0.4% for the month of April. Stripping out the volatile food and energy costs, prices have matched estimates of 0.2%. Over the last twelve month, headline CPI has risen by 1.1% as compared to March’s 0.9%.

In addition to the CPI release, housing starts and building permits portrayed a mixed picture, coming in at 1.172 Million and 1.116 Million, respectively.

Later on Tuesday, Industrial Production, Capacity Utilization data along with speeches by FOMC’s Lockhart, Williams and Kaplan will drive the pair further during the day.

Technical levels to watch

Beyond 0.9800 handle the pair might face resistance at 200-day SMA near 0.9838-40 region, beyond which the pair could target 0.9868-70 resistance.

On the other hand, a break below 0.9785 could target 0.9700 confluence support with intermediate support near 0.9755-50 resistance break-point.


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