USD/CHF Up Against Initial Resistance

While sellers attempted to take USD/CHF lower in yesterday’s trading, with the pair falling to 1.0106 for a low, the decline was not sustained and the pair managed a solid bounce from the worst level of the session. In today’s trading, the pair is following through to the upside as the dollar is stronger ahead of President-elect Donald Trump’s 11:00 am press conference. At present, USD/CHF is at 1.0205, up 0.36%.

In play as a result of today’s move to the upside is resistance at the 1.0200 level. On a sustained break above this level, the target becomes key resistance is at the 1.0335-1.0343 zone, representing the December peak and the failed test of that peak which took place January 3rd.

A sustained break above this level would turn the longer-term trend in USD/CHF in favor of the bulls. On such a move, the target becomes the June 2010 high at 1.1732.

There are no economic releases in Switzerland throughout the rest of the week and none on the calendar today in the U.S. All eyes will be on President-elect Trump’s press conference, in which he is expected to reveal more about his plans for the economy.

Should this event elicit selling in the dollar, first support for USD/CHF is at last week’s low at 1.0083, which represents the low of a piercing pattern, a bullish candlestick signal. Below this level, support is at the December 30 low at 1.0058.

The key economic reports in the U.S. this week are due to be released Friday, as U.S. Retail Sales and PPI for December are on the calendar at 08:30 ET. Retail Sales is expected at 0.7%, following a reading of 0.1% in November. Markets will be looking at the retail spending data to judge whether the recent improvement in consumer confidence has translated into stronger spending. December PPI is expected at 0.3% following a reading of 0.4% in November. At 10:00 ET on Friday, the University of Michigan Sentiment Index will be released. A reading of 98.5 for January is expected, following a reading of 98.2 in December.

USD/CHF Daily/Weekly Charts

USDCHF_011117

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Tracy L. Morganthall, CMT, has been a Technical Market Analyst for more than 20 years. She has experience analyzing and producing reports on equities, both domestic and international markets, as well as Forex and commodities. She attended Trenton State College in Trenton, New Jersey, earning a Bachelor's in Finance.