Forex: USD/CHF bounce capped at 0.9225 with more data to go

FXstreet.com (Barcelona) - Yesterday's downside was held above the 0.9200 psychological level, with a 0.9201 low printed during Asian session. The USDCHF is now attempting at extending its bouncing movement above 0.9225 as the European session opens.

Released today was Switzerland unemployment rate, that rose from 3.1% to 3.3% in December. As the CHF is pegged to the EUR, the German November trade balance (widened surplus at ¬14.6B, but narrower than the expected ¬15.0B) is very much relevant as well. The monthly change in German exports and imports came in contracted by -3.4% and -3.7%, respectively, much weaker than the consensus of -0.5% and +0.4%.

Both exports and imports fell in France, to ¬36.5B and ¬40.8B in November, and the trade deficit narrowed from ¬-4.7B to ¬-4.3B.

The USDCHF is seen consolidating at the 6 month downtrend, currently at 0.9291, with additional resistance here extending to 0.9303 (double Fibonacci retracement and Fridays high), according to Commerzbank analysts. "While we acknowledge that this has held the initial test we do in fact favor a break higher", wrote analyst Karen Jones, pointing to interim support at 0.9190/60.