8 Apr 2015
USD/CHF drops on strong Swiss CPI
FXStreet (Mumbai) - A better-than-expected Swiss CPI data pushed the USD/CHF pair lower to 0.9616, before it recovered slightly to trade at 0.9625.
Trades below 50-DMA
The pair dropped below 50-DMA located at 0.9636 after the data in Switzerland showed CPI in March rose 0.3% month-on-month, beating the estimate of 0.2%. Meanwhile, the pace of decline in prices slowed to -0.9% year-on-year, compared to the expectation of -1.00%.
Meanwhile, the broad based weakness in the USD also weighed over the pair. The USD is being sold across the board in the early European session amid the absence of fresh fundamental triggers.
USD/CHF Technical Levels
The immediate resistance is seen at 0.9670, above which gains could be extended to 0.9755. On the flip side, a break below 0.9600 could drive the pair lower to 0.9577 (100-DMA).
Trades below 50-DMA
The pair dropped below 50-DMA located at 0.9636 after the data in Switzerland showed CPI in March rose 0.3% month-on-month, beating the estimate of 0.2%. Meanwhile, the pace of decline in prices slowed to -0.9% year-on-year, compared to the expectation of -1.00%.
Meanwhile, the broad based weakness in the USD also weighed over the pair. The USD is being sold across the board in the early European session amid the absence of fresh fundamental triggers.
USD/CHF Technical Levels
The immediate resistance is seen at 0.9670, above which gains could be extended to 0.9755. On the flip side, a break below 0.9600 could drive the pair lower to 0.9577 (100-DMA).