The Swiss franc was seen gaining bids against the US dollar, as the buyers’ sentiment improved recently. The USD/CHF pair earlier this week traded higher, but the US dollar buyers were seen struggling around an important area. Moreover, the EUR/USD pair climbed higher today, which in turn increased pressure on the US dollar and took the USD/CHF pair lower. We need to see how the pair trades in the coming sessions, as a break below 0.9500 support area might ignite sharp declines moving ahead.
Today, in the euro area the Italian Industrial Orders i.e. an indicator which helps in evaluation of orders in shipments, inventories, and new and unfilled orders was published by the National Institute of Statistics. The forecast was not of a gain in February 2015, compared to the last month. However, the end result was a bit on the higher side, as the Italian Industrial Orders managed to rise by 0.8%. Considering the year-over-year change, the industrial orders increased by 2% in February 2015, compared to Feb 2014. This helped the EUR/USD pair and in turn increased pressure on the US dollar.
Swiss ZEW Survey Expectations In Switzerland, the ZEW Survey Expectations representing business conditions, employment conditions and other elements affecting the day to day running of a business in Switzerland was released by the Centre for European Economic Research. The outcome was on the higher side, as the Swiss ZEW Survey Expectations managed to increase from the last reading of -37.9 to -23.2 in April 2015. The report stated that a recovery is on the way after the CHF shock at the start of 2015.
Moreover, the Swiss assessment of the present state of economic activity also managed to increase in April 2015, compared to the preceding month and now stands at -2.4. Overall, the report was on the positive side, and helped the Swiss franc to gain a few bids. The USD/CHF pair was seen heading lower after the release.
Technically, the USD/CHF pair has a major support formed around 0.9500. Only a break below the mentioned level might call for more losses in the near term. There is a lot of bearish pressure on the US dollar and if it continues moving ahead, the pair might head towards 0.9440. On the upside, the 0.9550 can be seen as a hurdle for buyers.