USDCHF – US Dollar Faces Tough Challenge Vs Swiss Franc

Key Points

  • The US Dollar failed to break the 0.9765-70 resistance area against the Swiss Franc, and moved down.
  • There are two bearish trend lines with resistances as 0.9738 and 0.9760 formed on the hourly chart of USDCHF.
  • Today in Switzerland, Trade Balance for May 2017 was released by the Federal Customs Administration.
  • The outcome was better than the forecast, as the trade surplus was 3,400M, more than the forecast of 2,440M.

USDCHF Technical Analysis

The US Dollar struggled a lot to gain momentum above the 0.9765-70 resistance area against the Swiss Franc. The USDCHF pair moved down and traded below the 0.9750 support and the 21 hourly simple moving average.

The pair declined and traded towards the 0.9712 support from where a recovery was initiated. It traded above the 23.6% Fib retracement level of the last decline from the 0.9766 high to 0.9712 low.

On the upside, there are two bearish trend lines with resistances as 0.9738 and 0.9760 formed on the hourly chart, which are major barriers for further recoveries in the near term. The 21 hourly SMA and the 50% Fib retracement level of the last decline from the 0.9766 high to 0.9712 low might also act as a hurdle at 0.9739.

Switzerland Trade Balance

Today in Switzerland, Trade Balance for May 2017 was released by the Federal Customs Administration. The forecast was lined up for a trade surplus of 2,440M in May 2017.

However, the result was better than the forecast, as the trade surplus was 3,400M. Imports of goods and services came in at 16,164M, more than the last revised 14,237M. Furthermore, the Exports of goods and services came in at 19,564M, more than the last revised reading of 16,196M.

Overall, the USDCHF may struggle to move above 0.9760 and most likely to test the 0.9705-00 support area in the near term.

Original Article