USD/CHF has recently bounced off the support area of 0.9620 and is currently hovering above 0.9700 area. Yesterday, Switzerland released a series of positive economic reports like unchanged Unemployment Rate at 3.2% which was expected to rise to 3.3% as well as CPI report which also showed an unchanged reading at 0.2% instead of the expected decrease to 0.0%. On the other hand, USD recently got a positive push from the Crude Oil Inventories report which was published with a surplus at 3.3M which was expected to show a deficit of -3.1M and Unemployment Claims were relatively lower at 245k which previously was at 255k but it was more than expectation of 241k. Today, we have USD Final Wholesale Inventories report which is expected to show a rise to -0.1% from previous 0.3%. Eventually, USD is likely to gain ground amid a positive fundamental report to push up against CHF. Importantly, CHF is also quite strong fundamentally which could prove to be quite tough for USD to advance in the coming days. The nearest FOMC meeting can be a very important tool for USD to give the greenback fresh impetus against CHF.
Now let us look at the technical chart. The price has just broken above 0.9700 area with the intraday moves. The bulls are quite strong in this pair that is expected to continue further if the price remains above 0.9700 with a daily close today. If price manages to remain above 0.9700 today, we will consider buy positions with targets towards 0.9800 and 0.9950 in the coming days. The long-term bias in this pair is bearish until price takes out 0.9950 with a daily close above it but the medium term bullish bias is expected to continue until price breaks below 0.9700 with a daily close.
