- The US Dollar jumped higher vs the Swiss Franc recently, and it looks like there is a chance of more gains.
- There is a rising triangle pattern formed on the hourly chart of the USDCHF pair, which is acting as an upside move catalyst.
- Swiss Producer and Import Prices provided by the Federal Statistical Office posted a rise of 0.3% in April 2016, more than the forecast of 0.1%.
- In terms of the yearly change, the Swiss Producer and Import Prices declined 2.4%.
The US Dollar slow and steadily moved higher vs the Swiss Franc, and traded above the 0.9750 level. There is currently a rising triangle pattern formed on the hourly chart of the USDCHF pair, which is helping the USD bulls.
The pair is also above the 50 hourly simple moving average, and is positioned with the triangle support area.
Overall, there is a chance of the pair moving higher, and breaking the 1.236 extension of the last drop from the 0.9763 high to 0.9663 low.
Swiss Producer and Import Prices
The Swiss Producer and Import Prices, which is an indicator of consumer price inflation was provided by the Federal Statistical Office. The forecast was slated for an increase of 0.1% in the PPI in April 2016, compared with the previous month. However, the result was positive, as there was a rise of 0.3% in the PPI.
When we look at the yearly change, then the Swiss Producer and Import Prices declined 2.4%. According to the report, “the rise is due in particular to higher prices for petroleum products. Compared with April 2015, the price level of the whole range of domestic and imported products fell by 2.4%. These are the findings of the Federal Statistical Office (FSO).”
The USDCHF pair as highlighted is testing a major resistance area. So, we need a keep a close eye on the triangle pattern for the next move.