- The US Dollar managed to pop higher recently against the Swiss Franc, and currently attempting a break higher.
- The USDCHF pair is currently attempting to settle above a bearish trend line on the hourly chart, which holds the key in the short term.
- Today in Switzerland, the UBS Consumption Indicator was published by UBS.
- The result was mixed as there was a minor rise from the last reading of 1.45 to 1.53 in August 2016.
USDCHF Technical Analysis
The US Dollar recently managed to recover well against the Swiss Franc, and traded above the 21 hourly simple moving average. The USDCHF pair just made a move above a bearish trend line on the hourly chart, but struggling for a close.
Moreover, the 0.9735 resistance is also acting as a barrier and protecting gains. The USD bulls need to clear it for further upsides.
On the downside, the broken 21 hourly SMA may be seen as a support area.
UBS Consumption Indicator
Today in Switzerland, the UBS Consumption Indicator, which is a leading indicator of private consumption trends, which is the most important component of Swiss GDP was published by UBS.
The market was expecting a minor rise in August 2016 from the last reading of 1.32. The result was positive, as there was a rise to 1.53, and even the last reading was revised to 1.45. The report highlighted that “Tourism accounted for much: The 1.6 % increase in overnight hotel stays compared with the previous year indicates that summer tourism took off after all. Meanwhile, the Swiss car market has maintained a pleasantly high level. New vehicle registrations in August were above the corresponding monthly average since the start of the millennium”.
Overall, it may be tough for the USD bulls to take the USDCHF pair higher. However, if the recent break is valid, then there is a chance of an upside move.