USD/CHF has been quite volatile with the bearish gains recently which lead some corrections along the way towards 0.97 to 0.9850 area. CHF has been quite positive with the economic reports this week which lead to recent bearish pressure where USD failed to sustain its gains. The trend is still bearish while USD have some high impact economic reports to deliver tomorrow including Retail Sales and CPI reports. Recently CHF CPI report was published with an increase to 0.0% which was expected to be unchanged at -0.1% and Unemployment Rate also reduced to 3.0% as expected from the previous value of 3.1%, which helped the currency to gain momentum over USD and have impulsive gains. On the other hand, today USD Unemployment Claims report is going to be published which is expected to decrease to 246k from the previous figure of 250k, PPI report is expected to decrease to 0.2% from the previous value of 0.4%, Core PPI report is expected to decrease to 0.2% from the previous value of 0.3%, IBD/TIPP Economic Optimism report is expected to increase to 52.3 from the previous figure of 51.9 and Natural Gas Storage is expected to show greater deficit of -318B from the previous figure of -206B. As of the current scenario, USD is expected to have worse outcome of the economic reports to be published today whereas CHF has been quite consistent with its positive economic reports to support its upcoming gains. Though USD has been the dominant currency earlier, we might see some volatility striking this pair this week before price breaks below 0.97 to create new lower highs in the process.
Now let us look at the technical view. The price has been quite impulsive with the bearish gains recently which made it bounce off the 0.9850 area and dynamic level of 20 EMA as well. The price is currently expected to reach 0.9700 support area in the coming days and if the price manages to break below it, then a sharp fall towards 0.9440 support area can be expected in the future. As the price remains below 0.9850 the bearish bias is expected to continue further.
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