Market Update: USDCHF set to test resistance?
Hi traders, today’s we’re taking a look at the USDCHF. Price continues its solid rally and is starting to eye off .9255 resistance.
To be honest price-wise the USD started to look a bit off-kilter a week and a bit ago. Sellers formed a new lower high and quickly set off with a new decline. That selling just about retraced all of the last short term rally higher. From the middle of last week dollar buyers started to show some pause stopping the selling with a hold at .9035. Technically this is a good point as it lined up with previous resistance.
Enter Friday’s NFP data. Initially on the release risk pulled back losses that had accrued during the day but this was short-lived and the USD took momentum and pushed higher to end Friday’s NY session. This week so far momentum has carried on and we have seen the USDCHF add 1.08% to this point. Buyers have cleared a few hurdles so far this week with a break of the downtrend yesterday and a break of ST resistance today.
Could tonight’s CPI push price back to over above .9255 resistance taking price to new 4-month highs? Today’s US CPI is due at 10:30 pm AEST and is expected to come in lower than last month figures. CPI is expected at 0.5% and the Core CPI is expected to come in at 0.4%. Could a jump higher continue the expectation of tapering and maintain the current surge the USD is seeing at the moment?