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Forex pairs in this Article » USD/CHF (Athens) - The USD/CHF under renewed pressure on poor retail sales release.

USD/CHF breaks the support as of 0.9300 on weak retail sales release

The USD/CHF was trading downwards since early European trading, but caught under heavy selling pressure after the release of disappointing US retail sales data. However, while the US retail data rose at a weaker than expected number (by 0.2% on a monthly basis, though there were upward revisions to previous months data), the figure was not that bad to stop the notorious “tapering”. Still, the ongoing weakness in the labor market paired with the slowdown in private sector credit along with soft retail sales data, dragged down the pair as market participants scale back bets of seeing a less-dovish FOMC.

Strategic aspects and Technical Outlook on USD/CHF

Karen Jones, Head Technical Analyst at Commerzbank suggests “USD/CHF has failed on its initial test of 0.9455 and is correcting lower. We look for this correction to ideally terminate circa. 09280 (the 50% retracement). What’s more, Rallies will find initial resistance at .9353 and will need to clear last week high at 0.9455 to reassert upside pressure.”
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