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Forex pairs in this Article » USD/CHF (London) - USD/CHF has taken out major support in what has been a continuous and relentless collapse from May highs 0.9840.

USD/CHF eye’s on US data

USD/CHF had little reaction to the worse than expected, and third tier data from Switzerland this morning when we saw Producer and Import Prices yoy -0.2% against previous -0.1% and well below the consensus of 0.3%. Mom for May came in at -0.3% against 0.1% consensus and April 0.2%. Coming up later on today is the US data that the market is anticipating. The focus will be retail sales, but there will be the usual initial jobless claims. For retail sales, Annette Beacher, head for Asia Research at TD Securities said that they are expecting to see further improvement in May, with sales advancing by +0.4% M/M (in line with consensus) due to warmer weather and strong auto sales. TD expects 340k (mkt 346k) for initial claims.

USD/CHF remains bearish

Axel Rudolph, Senior Technical Analyst at Commerzbank said that the pair USD/CHF remains bearish and has now fallen through major support at 0.9206/0.9185. He said it is made up of the April low, the 78.6% Fibonacci retracement of the up move seen this year and the February 20 low. The 2013 low at 0.9023 is now in focus he say’s. Given that last week the market severed its 2011-2013 support line, rallies will need to regain 0.9528 (38.2% Fibonacci retracement) to alleviate immediate downside pressure. He notes that initial resistance above 0.9206 can be seen around the 0.9247 May low and then along the 200 day moving average at 0.9349 as well as between the 0.9419 June 10 high and the 55 day moving average at 0.9447
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