Key Points
- The US Dollar traded higher recently above the 0.9800 resistance against the Swiss Franc.
- There was a break above a key bearish trend line with resistance at 0.9790 on the hourly chart of USDCHF.
- Recently in the US, the Philadelphia Fed Manufacturing Index for Oct 2017 was released by the Federal Reserve Bank of Philadelphia.
- The outcome was above the forecast of 22.0 as there was a rise from the last reading of 23.8 to 27.9.
USDCHF Technical Analysis
The US Dollar started a new upside wave from the 0.9737 low against the Swiss Franc. The USDCHF pair made an upside move and traded above the 0.9780 resistance area and settled above the 21 hourly simple moving average.
Moreover, there was a break above a key bearish trend line with resistance at 0.9790 on the hourly chart. The pair is currently correcting lower and approaching the 38.2% Fib retracement level of the last wave from the 0.9737 low to 0.9849 high.
On the downside, the most important support is near 0.9790 and the 50% Fib retracement level of the last wave from the 0.9737 low to 0.9849 high.
US Philadelphia Fed Manufacturing Index
Recently in the US, the Philadelphia Fed Manufacturing Index for Oct 2017 was released by the Federal Reserve Bank of Philadelphia. The market was positioned for a minor decline in the index from the last reading of 23.8 to 22.0.
The actual result was above the forecast of 22.0 as there was a rise from the last reading of 23.8 to 27.9. The report added that:
The index for current manufacturing activity in the region increased 4 points to a reading of 27.9 and is now at its highest reading since May (see Chart 1). More than 39 percent of the firms indicated increases in activity this month, while 11 percent reported decreases.
Overall, the USDCHF pair remains in the bullish zone and likely to find buyers near 0.9795 if it corrects lower in the short term.
