- Swiss franc gained against the US dollar recently, as the demand for safe havens escalated.
- There is a bullish trend line formed on the 4-hours chart of the USDCHF pair, which is acting as a support for the pair at the moment.
- The USDCHF pair is now below the 200 simple moving average on the 4-hours chart, which is a bearish sign.
- Swiss Consumer Price Index, issued by the Swiss Federal Statistical Office posted a rise of 0.2% in Feb 2016, which was better compared with the forecast of a 0.1 decline.
The Swiss franc had an upper hand against the US dollar lately, as it gained and traded higher. The USDCHF pair was down and tested the 0.9900 support area. There is a bullish trend line formed on the 4-hours chart of the USDCHF pair, which is currently preventing losses in the short term.
The pair is currently trading below the 200 simple moving average on the 4-hours chart, and attempting to correct higher.
The pair may face sellers on the upside near 0.9940-50, and if manages to break the trend line, then a move towards 0.9850 is possible.
Today, 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 forecast was lined up for a decline of 0.1% in the CPI in Feb 2016. However, the outcome was positive, as there was an increase of 0.2%.
The report added that the “Swiss Consumer Price Index (CPI) increased by 0.2% in February 2016 compared with the previous month, reaching 99.8 points (December 2015=100 points). Inflation was -0.8% in comparison with the same month in the previous year”.
Overall, the Swiss franc may gain further if bulls manage to break the highlighted trend line and support area.