Swiss CPI warmer than expected


Swiss May CPI data came in a little warmer than expected, lifting to 0.5% y/y from 0.4% y/y in April. The median forecast had been for an unchanged 0.4% rate. CPI still remains below the cycle high 0.6% rate, which was recorded in both February and March. SNB president Jordan last week reaffirmed that central bank’s commitment to ease monetary policy settings, which are aimed at keeping a cap on the Swiss franc, and which he continued to describe as being “significantly overvalued.”

Despite the better than expected data, CHF’s weakness continues versus currencies such as US Dollar, Australian dollar and Euro. All these three crosses look bullish in the 4-hour charts, however the most interesting one is AUDCHF, since it manages to close yesterday above 20 DMA, at 0.7283. Hence today a Long intraday position was taken at 0.7301, which is against the general downtrend observed since February 22. Hence by considering that the pair moves into a downtrend channel, I entered Long since it seems that the pair has further space upwards before a possible retracement.

Target 1, was set at 0.7335, which is the confluence of 200-period EMA and the down trendline plotted since March 31, in the 4-hour chart. Target 2 is a daily target and was set at the 50-Day EMA, which is at 0.7380. Support is at 0.7240. In the Daily chart, RSI is at 49 sloping upwards from last week’s lows. Meanwhile Parabolic SAR turned positive.

Click here to access the HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! The next webinar will start in:

Andria Pichidi

Market Analyst


Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.