- The US Dollar after trading as low as 0.9739 against the Swiss Franc corrected lower, but the upside seems to be limited.
- There is a contracting triangle pattern formed on the hourly chart of the USDCHF pair, which may provide us the next break.
- Today, the Swiss Gross Domestic Product report was released by the Swiss Statistics.
- The forecast was lined up for an increase of 0.4% in Q2 2016, but it came in at 0.6%.
USDCHF Technical Analysis
The US Dollar struggled recently against the Swiss Franc and traded towards the 0.9740 level. Later, the USDCHF pair recovered, but found sellers near the 50% Fib retracement level of the last fall from the 0.9889 high to 0.9739 low.
The pair is currently correcting higher, but may be positioning for a break. There is a contracting triangle pattern formed on the hourly chart of the USDCHF pair, which may provide us the next move.
The chances of a downside move are more since the pair is struggling to settle above the 21 hourly simple moving average.
Swiss Gross Domestic Product
Today during the London session, the Swiss Gross Domestic Product, which is a measure of the total value of all goods and services produced by Switzerland was released by the Swiss Statistics.
The forecast was lined up for an increase of 0.4% in Q2 2016, compared with the previous quarter. However, the outcome was above the forecast, as there was a rise of 0.6%. Moreover, the Swiss Consumer Price Index, which measures the average price change for all goods and services purchased by households for consumption purposes was issued by the Swiss Federal Statistical Office. The report was as per the forecast, as there was a decline of 0.1% in August 2016.
Overall, there is a high probability that the Swiss Franc may gain bids in the near term versus the US Dollar moving ahead.