Impact on USD
The US dollar was ignited by the stronger industrial production data. Industrial production jumped 1.3 percent after a 0.1 percent increase in October. But the other data such as building confidence dropped 1 point in December. Following a four-point uptick last month, builder confidence in the market for newly built single-family homes fell one point in December to 57 according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released yesterday. After the mixed US data, traders turn their attention on the Federal Reserve meeting this week.
The pair has been consolidating near a 3-week low. The pair has the nearest support between 0.9616 and 0.9595. USD/CHF fell below 20Dsma and closed below it. During yesterday's pullback, it was unable to close above it. Today, the pair is taking support at 0.9649 (2hr low). The pair has been making lower lows and lower highs on the hourly chart. Bulls will regain strength above 0.9691 and strong momentum above 0.9725. The pair fell below the upswing channel and closed below the support trend line on the daily chart. Today, in early Asia's session the pair was unable to break the support trend line. We recommend fresh selling only below 0.9590. Today, the focus has shifted to US building permits and flash manufacturing PMI.
The material has been provided by InstaForex Company - www.instaforex.comFor detail explanation and best discovery on daily market trends and news you may visit via Technical Analysis of USD/CHF for Decemebr 16, 2014 . Thanks for your support.
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