USD/CHF grinds higher around 0.9150, following the notable bounce off a three-month low. That said, the quote consolidates the biggest daily jump since mid-September amid the pre-Fed anxiety and a lack of major data/events. The risk barometer pair jumped heavily the previous day following Switzerland’s upbeat Consumer Price Index (CPI) and Retail Sales data for October and September respectively. The headline inflation figure cross 1.1% market consensus to 1.2% YoY whereas the Retail Sales jumped past upwardly revised 0.8% previous readouts to 2.5% on the yearly basis. CHF weakness on Tuesday flies in the face of strong Swiss economic data released during Tuesday’s European morning; firstly, the October Consumer Price Inflation report was much hotter than expected with the MoM rate of CPI coming in at 0.3% versus forecasts for 0.1% and the YoY rate rising to 1.2% from 0.9% in September, more than the expected rise to 1.1%. The September Retail Sales report also showed an acceleration in consumer spending, with the YoY rate of sales growth rising to 2.5% from an upwardly revised 0.8% in August.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

US Dollar versus Swiss Franc are trading above our trend line and monthly pivot zone 0.9145 which has been acting as a strong support to the pair since a while. USDCHF failing to break above 0.9350, drove it into the bearish channel and most probably is in a correction - incase found support above our critical support zone. Positions should be adjusted more onto the bullish side if the pair reverses from the current market price, specifically if provides a closing above 0.9220. On the bearish side, if USDCHF closed below the 0.9145 support zone, then we can consider our next stop as 0.9027 and 0.8924 i.e 38.2% and 23.6% fibo retracement levels. 

Will USDCHF be able to break 0.9110 ?

Nov 03 2021