Fundamental analysis of USD/CHF for August 18, 2017

USD/CHF has been impulsively bearish recently after bouncing back from the corrective range resistance of 0.9770 area. CHF economic reports were quite neutral in nature as well as the PPI report which published at 0.0% as expected which previously was at -0.1%. So this report had minor impact. On the other hand, the United States published both positive and negative economic reports which affected other currencies but could not stop the CHF growth. Today the US Prelim UoM Consumer Sentiment report is going to be published which is expected to show slight improvement to 94.0 from the previous figure of 93.4. Besides, FOMC Member Kaplan is going to speak today about the interest rates and future monetary policies. His comments are expected to be neutral in nature with no hints of recent rate hike decisions. To sum up, CHF did not have any high impact economic reports this week but managed to gain and maintain the bearish trend against USD which does hint that CHF is still quite stronger with the overall market sentiment in place. If USD reports provide any positive reports of high impact events in future we might see some USD gains or else CHF is expected to gain further in the coming days.

Now let us look at the technical view. The price has rejected the 0.9770 resistance level recently which lead to further impulsive bearish pressure in the pair. The price is currently residing below the dynamic level of 20 EMA and expected to reach 0.9450 support level in the coming days. As the price remains below the 0.9770 resistance level with a daily close, the bearish bias is expected to continue further in the coming days.

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