- Swiss franc rocketed higher against the US dollar during the past couple of sessions, as the USDCHF pair nosedived.
- There was a bullish trend line on the hourly chart of the USDCHF pair, which was broken to ignite the downside move.
- Today, the SNB Interest Rate Decision was lined up in which the central bank opted not to change the interest rates and kept it at -0.75%.
- Moreover, the Swiss Producer and Import Prices provided by the Federal Statistical Office posted a decline of 0.6% in Feb 2016.
The US Dollar struggled a lot recently against the Swiss Franc, and traded lower. There was a bullish trend line on the hourly chart of the USDCHF pair, which was once breached ignited a solid downside move as can be seen from the chart.
The pair is now well below the 100 and 200 hourly simple moving average, which is calling for a move towards 0.9600 handle.
If the pair corrects higher from the current levels, then it may find resistance near the 23.6% Fib retracement level of the last leg from the 0.9913 high to 0.9679 low.
Today, there were a couple of important events lined up in Switzerland. The most important one was the SNB Interest Rate Decision was lined up in which the central bank opted not to change the interest rates and kept it at -0.75%. Moreover, the Producer and Import Prices, which is an indicator of consumer price inflation was provided by the Federal Statistical Office. The market was aligned for a rise of 0.2% in Feb 2016, but the result lower. The Swiss PPI declined by 0.6%, and in terms of the yearly change, there was a decline of 4.6%.
The report added “decline is due mainly to lower prices for chemical and pharmaceutical products as well as petroleum products. Compared with February 2015, the price level of the whole range of domestic and imported products fell by 4.6%. These are the findings of the Federal Statistical Office (FSO)”.
Overall, the USDCHF pair may correct higher in the near term, but may face sellers for another downside move.