USD/CHF Tests 0.9800 on Mixed US Data
The greenback's rebound from lower levels intensified after the release of upbeat US CPI for April, lifting the USD/CHF pair beyond 0.9800 handle.
The pair accelerated its up-move to 0.9804 after the US CPI printed
above expectation figure of 0.4% for the month of April. Stripping out
the volatile food and energy costs, prices have matched estimates of
0.2%. Over the last twelve month, headline CPI has risen by 1.1% as
compared to March’s 0.9%.
In addition to the CPI release, housing starts and building permits
portrayed a mixed picture, coming in at 1.172 Million and 1.116 Million,
respectively.
Later on Tuesday, Industrial Production, Capacity Utilization data along
with speeches by FOMC’s Lockhart, Williams and Kaplan will drive the
pair further during the day.
Technical levels to watch
Beyond 0.9800 handle the pair might face resistance at 200-day SMA near
0.9838-40 region, beyond which the pair could target 0.9868-70
resistance.
On the other hand, a break below 0.9785 could target 0.9700 confluence
support with intermediate support near 0.9755-50 resistance break-point.
