Forex: USD/CHF trading at 0.9217/20 after EMU data

FXstreet.com (Barcelona) - The USDCHF has traded in a rather narrow 28-pip consolidation (0.9201 intraday minimum 0.9229, intraday maximum) Tuesday, having successfully avoided losing its grip on the 0.9200 level thus far. In the aftermath of a tranche of recent EMU data, the pair is maintaining the green, buoyed by a mild bout of risk aversion that is currently permeating the market.

According to Slobodan Drvenica, an analyst at Windsor Brokers Ltd., "The recent upside rejection at the 0.9300 level and formation of hourly failure swing increases the downside risk, as hourly studies turned negative and reversal retraced nearly 50% of the 0.9080/0.9300 recovery rally."

Presently, the USDCHF is trading positively at a rate of +0.05%. Temporary support is found at the 0.9200 handle (55-day EMA), however, holding below would keep the focus at the downside, while break below 0.9200 to open way for further retracement and expose 0.9180 (previous range top) and 0.9163 (Fib 61.8%), notes Drvenica.

In the EMU, Retail Sales (YoY) have contracted -2.6% in November, against consensus expectations of -2.7%. Moreover, Retail Sales (MoM) have grown only +0.1% in November, relative to projections of +0.3%. Unemployment Rate in the month of November was reported at 11.8%, consistent estimates of 11.8%. Finally, Consumer Confidence in December came in at -26.5, slightly beating a projected value of -26.6.