Key Highlights
- The US Dollar started an uptrend from the 0.9440 low against the Swiss Franc.
- There is a crucial contracting triangle forming with support at 0.9680 on the 4-hours chart of USD/CHF.
- The UBS Consumption Indicator in Switzerland for August 2017 rose from the last revised 1.46 to 1.53.
- The US Pending Home Sales figure will be released for August 2017, which is forecasted to decline 0.5% (MoM).
USDCHF Technical Analysis
The US Dollar is following a bullish trend and trading well above the 0.9600 support against the Swiss Franc. The USD/CHF pair is facing the next upside challenge near 0.9750, which is a crucial resistance.
Looking at the 4-hours chart of USD/CHF, the pair was rejected twice from the 0.9740-50 resistance levels. The last drop was sharp from 0.9746 to 0.9641. However, a crucial contracting triangle with support at 0.9680 prevented declines.
The pair is once again moving north and already above the 61.8% Fib retracement level of the last decline from the 0.9746 high to 0.9642.
It would be interesting to see if the US Dollar can break 0.9750 this time or not. Another failure would be a strong bearish sign for a reversal towards 0.9600. On the flip side, a break of 0.9750 might call for further gains towards the 0.9800 and 0.9840 levels.
UBS Consumption Indicator
Today in Switzerland, the UBS Consumption Indicator for August 2017 was released. The forecast was slated for a minor rise from the last reading to 1.50.
The actual result was better, as there was a rise in the UBS Consumption Indicator to 1.53. There was a sharp rise in new car registrations and the numbers of hotel stays by Swiss residents.
The report added that:
New car registrations in August boosted the UBS consumption indicator. August saw nearly 6% more new car registrations than the same month last year. The upward trend in overnight hotel stays by Swiss residents also helped. Overnight stays in July increased nearly 3% compared to July 2016.
The overall result was positive, but there was no impact on USD/CHF towards the downside. The pair remains in an uptrend and might soon head towards the 0.9750 level and could even break it.
Economic Releases to Watch Today
US Pending Home Sales for August 2017 (MoM) – Forecast -0.5%, versus -0.8% previous.
US Durable Goods Orders for August 2017 – Forecast +1.0%, versus -6.8% previous
