FX.co ★ Technical analysis of USD/CHF for February 16, 2017

USD/CHF is under pressure. The pair broke below its 20-period and 50-period moving averages and consolidated on the downside. In addition, the declining 20-period moving average crossed below the 50-period one and is playing a resistance role. The relative strength index is bearish below its neutrality level at 50 and lacks upward momentum.

The US Labor Department reported that consumer prices increased 0.6% on month (vs. +0.3% expected) and advanced 2.5% on year (vs. +2.4% YoY expected) in January. The Commerce Department announced that January retail sales grew 0.4% on month (vs. +0.1% expected). Meanwhile, the Empire State Manufacturing Survey Index jumped to +18.7 in February (vs. +7 expected) from +6.5 in January. On the other hand, industrial production declined 0.3% on month in January (vs. +0.0% expected).

In a testimony before the House Financial Services Committee, Federal Reserve Chairwoman Janet Yellen maintained her stance pointed out in the day before that the Fed would raise interest rates at an upcoming policy meeting.

Below 1.0055 would expect a further drop to 1.000 and even 0.9980 in extension.

Resistance levels: 1.0075, 1.0095, and 1.0110

Support levels: 1.000, 0.9980, and 0.9950