USD/CHF has been quite impulsive recently after breaking above the 0.9860 resistance area. USD has been quite positive with the economic reports recently which resulted to further bullish pressure against CHF. Recently CHF UBS Consumption Indicator report was published with an increased figure of 1.56 from the previous figure of 1.50 and Credit Suisse Economic expectations also showed an increase to 32.0 from the previous figure 28.0. The positive economic reports of CHF could not quite hold the price lower whereas USD was quite impulsive with the gains. On the USD side, recently the economic reports were quite favorable for the gains and today USD Advance GDP report is expected to decrease to 2.6% from the previous value of 3.1%, Advance GDP Price Index report is expected to increase to 1.7% from the previous value of 1.0%, Revised UoM Consumer Sentiment report is expected to decrease to 100.8 from the previous figure of 101.1 and Revised UoM Inflation Expectations is expected to be hawkish as well from the previous value of 2.3%. As of the current scenario, USD is expected to gain against CHF in the long term whereas currently it is expected to correct itself in the coming days before launching up higher.
Now let us look at the technical view, the price is currently residing above the dynamic level of 20 EMA and 0.9860 support level which is expected to be retested soon in the coming days before it launches up higher. As the price remains above the 0.9760 to 0.9860 support area the bullish bias is expected to continue further.
