After a long persistent bearish trend in place, USD/CHF is currently residing in a corrective range between 0.9440 to 0.9760 area. Recent positive economic reports from the US helped the bulls to push the price a bit higher but it could not hold the gain against CHF. Recently, The SNB Libor Rate annoncement was published unchanged as expected at -0.75% which helped the currency to gain some momentum yesterday. As the short-term interest rates are the paramount factor for the currency valuation, the same stance did contribute to the gains of CHF against USD in the current situation of the market. Today, US Core Retail Sales report is going to be published which is expected to be unchanged at 0.5%, Retail Sales report is expected to show a decrease to 0.1% from the previous value of 0.6%, Empire State Manufacturing Index is expected to decrease to 18.2 from the previous figure of 25.2, Capacity Utilization Rate is expected to have a slight increase to 76.8% from the previous value of 76.7%, Industrial Production report is expected to decrease to 0.1% from the previous value of 0.2%, and Prelim UoM Consumer Sentiment is expected to decrease to 95.1 from the previous figure of 96.8. As most of the forecasts are not quite positive for USD, any positive report can help USD to push the price higher. On the other hand, if the actual report confirms a forecast or worse than a forecast, then CHF is expected to dominate further in the coming days.
Now let us look at the technical chart. The price has shown a good amount of rejection of the bulls yesterday after the Swiss central bank announced the Libor Rate decision. Currently after the rejection, the price has come under bearish pressure in the market which is expected to reach 0.9440 support level in the coming days. As the price remains below the resistance level of 0.9770, the bearish bias is expected to continue further.
