- The US Dollar started a downside move from well above the 1.00 handle against the Swiss Franc.
- There is a major contracting triangle forming with support at 0.9980 on the hourly chart of USDCHF.
- Recently in the US, the Consumer Credit for Sep 2017 was released by the Board of Governors of the Federal Reserve.
- The outcome was above the forecast of $18.00B as the Consumer Credit came in at $20.83B.
USDCHF Technical Analysis
The US Dollar failed to remain above the 1.00 handle against the Swiss Franc, and started a downside move. The USDCHF pair is currently in a slow declining move and it trading near the 0.9985 level.
The pair recently failed to move above the 76.4% Fibonacci retracement level of the last wave from the 1.0023 high to 0.9966 low and settled below the 21 hourly simple moving average.
Looking at the hourly chart of USDCHF, there is a major contracting triangle forming with support at 0.9980. A break either above 1.0010 or below 0.9980 would open the doors for the next move in the near term.
US Consumer Credit
Recently in the US, the Consumer Credit for Sep 2017 was released by the Board of Governors of the Federal Reserve. The market was positioned for the Consumer Credit to post $18.00B compared with the last $13.06B.
The actual result was above the forecast of $18.00B as the Consumer Credit came in at $20.83B. The report stated that:
Consumer credit increased at a seasonally adjusted annual rate of 5-1/2 percent during the third quarter. Both revolving and nonrevolving credit increased at similar annual rates. In September, consumer credit increased at an annual rate of 6-3/4 percent.
Overall, the USDCHF pair is preparing for the next move either above 1.0010 or below 0.9980 in the short term.