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Market Analysis

Home » Technical Analysis » Daily » USDCHF Facing Significant Resistance at 0.9960-80

USDCHF Facing Significant Resistance at 0.9960-80

Posted by FXTimes in Daily - January 11th, 2016 1:00 pm GMT

US dollar usdjpy usdchf

Key Points

  • US Dollar continued to slide this past week against the Swiss Franc and later found support.
  • The USDCHF pair is making an attempt to correct higher, but facing a monster resistance near 0.9960-80
  • Swiss Retail Sales conducted by the Swiss Federal Statistical Office was released today, which disappointed.
  • The Swiss Retail Sales posted a decline of 3.1% in December 2015, compared with the forecast of a 0.3% rise.

Technical Analysis

The USDCHF pair recently fell to trade near the 0.9880 support area where it found buyers who saved the pair from more losses. The pair is currently correcting higher, but facing a monster resistance near the 0.9960-80 area.

USDCHF

There are a couple of bearish trend lines on the hourly chart along with the 200 hourly simple moving average, which are acting as a hurdle and preventing any additional gains.

A break and close above the 200 hourly MA may take the pair above the 1.0000 level. On the downside, the 0.9940-20 area can be seen as a support.

Swiss Retail Sales

The Swiss Retail Sales, which is a survey of goods sold in the last month and serves as an indicator of the Swiss consumer demand and conducted by the Swiss Federal Statistical Office was reported during the London session. The market was expecting an increase of 0.3% in December 2015, compared with the same month a year ago. However the outcome was disappointing, as the Swiss Retail Sales declined by 3.1% in December 2015.

The report published added that “Retail sales of food, drinks and tobacco registered a decline in real turnover of 0.4% (in nominal terms -1.0%). The non-food sector registered negative growth of 1.9% (in nominal terms -4.3%)”.

Overall, the result was not encouraging, and pushed the Swiss Franc down against the US dollar. Let us see whether the USDCHF pair can clear the highlighted trend line and resistance area or not to trade higher.

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