USDCHF Forex Analysis – US Dollar Crushed as CPI Declines

Share on Facebook

Share on Twitter

Share on Google+

Share on LinkedIn

Pin to Pinterest

Share on StumbleUpon

+

Key Takeaways

• US Dollar traded lower against a basket of currencies today, including the Euro and the Swiss Franc.
• USDCHF pair broke a major support area, and currently looks like forming a breakout pattern on the hourly chart.
• A break below the triangle support may call for more losses in the short term.
• A critical release was lined up in the US today, as the Consumer Price Index was published by the US Bureau of Labor Statistics.
• The outcome was below the forecast, as the CPI came in at -0.1 in December 2015.
• The market was not expecting any decline in the CPI this time.

US CPI

Today, the US saw a couple of major economic releases, including the Consumer Price Index by the US Bureau of Labor Statistics. The US CPI evaluates the price movements by the comparison between the retail prices of a representative shopping basket of goods and services. The forecast was lined up for no change in the CPI in December 2015, compared with the preceding month.

However, the outcome was negative, as there was a decline of 0.1% in the CPI in December 2015. When we look at the yearly change, then the US CPI increased 0.7% in December 2015, compared with the same month a year ago. It was also on the lower side, as the forecast was a rise of 0.8%.

Must Read – Forex Majors Update – GBPUSD and NZDUSD

The report also added that the "index for all items less food and energy rose 0.1 percent in December, its smallest increase since August. The index for shelter continued to rise, and the indexes for medical care, household furnishings and operations, motor vehicle insurance, education, used cars and trucks, and tobacco also increased in December".

USDCHF Technical Analysis

The US Dollar broke a support trend line on the hourly chart against the Swiss Franc for a move down. Now, there is a triangle pattern forming, which is breached may call for more losses.

We can look for a sell opportunity as the USDCHF breaks it.

Intraday Support levels for USDCHF – 0.9990 and 0.9960

Intraday Resistance Levels for USDCHF – 1.0010 and 1.0020

Related Posts To USDCHF Forex Analysis – US Dollar Crushed as CPI Declines

USDCHF Forex Analysis – US Dollar Crushed as CPI Declines 2016-01-20T12:09:00-08:00 Rating: 4.5 Posted by: maiafrans