- US Dollar after trading close to the 0.9950 area corrected lower against the Swiss Franc.
- There is a bearish trend line formed on the hourly chart, which is about to act as a catalyst for a break higher.
- US Personal Income released by the Bureau of Economic Analysis, Department of Commerce registered a rise of 0.1% in September 2015, lower compared with the forecast of 0.2%.
- Similarly, the US Personal spending posted an increase of 0.1% in September 2015, lower compared with the forecast of 0.2%.
The USDCHF pair is under correction phase, but it looks like it might break the shackles and trade higher once again. There is a bearish trend line formed on the hourly chart, which if broken might clear the way for more gains moving ahead.
The pair is well above the 100 hourly simple moving average, and if it settles above the 50 hourly MA, then a run towards 0.9950 is possible.
On the downside, the 100 hourly simple moving average holds the key for more losses.
US Personal Spending and Income
Today, the US Personal spending and income reports were released by the Bureau of Economic Analysis, Department of Commerce. First, the US Personal Income, which measures the total income received by individuals, from all sources including wages and salaries, interest, dividends, rent posted a rise of 0.1% in September 2015. This was disappointing, as the market was expecting a gain of 0.2%.
Second, the Personal Spending which measures purchases of goods and services by households and by nonprofit institutions that serve households from private business was reported. The market was expecting an increase of 0.2% in the sales in September 2015. The result was again on the lower side, as it rose only 0.1%.
Overall, the reports were not as positive as the market expected, but the greenback looks like gaining bids and might trade higher moving ahead.