Alex Borzak
The initial Swiss inflation figures for March seem to have supported the Swiss Franc. Amid zero inflation, the Swiss National Bank reports about higher currency reserves. They say zero inflation is a good result anyway.
According to the mentioned inflation report, the level of consumer prices remained unchanged in March. This was good news as compared to the forecast, which promised a 0,2% decline. March's figures turned out to be better than those seen in February (a 0,1% drop).
If to consider the month-over-month inflation figures for March, they indicated a 0,4% increase, which is above +0,1% seen in February.
All in all, the actual data almost matched the SNB's forecast. According to the forecast, the consumer inflation in Switzerland is likely to remain at the zero level. Still, the central bank expects the rate of inflation to increase up to 0,4% in 2015.
Meanwhile, Masterforex-V Academy has just analyzed USDCHF to find out the near-term prospects and possible scenarios for the currency pair in question.
The experts report that the Swiss Franc is trading within the scope of a retracement, which is going on against a long-term rally. USDCHF is rallying. The upswing is represented by wave A/B of level Daily or higher.
At this point, the currency pair has completed sub-wave a(C )/C, Masterforex-V Academy reports. A further rally will bring the price close to 0.8951. Once it is overcome, we may see USDCHF going further up, thereby dropping the value of the Swiss currency against its American counterpart. If this is the case, the price may encounter resistance at 0.8973, 0.9021, 0.9050.
Alternatively, a break below the bottom of the MF sloping channel and the pivot located 0.8842 will complete the current price move.
Alex Borzak
