Key Points
- The US Dollar remained higher versus the Swiss Franc, and currently trading above the 0.9820 support area.
- There is a bullish trend line formed on the hourly chart of USDCHF, which is acting as a support at 0.9850.
- Today in the US, the Monthly Budget Statement was released by the Financial Management Service.
- The result was better than the forecast of $-80B, and came in at $-44B in Oct 2016.
USDCHF Technical Analysis
The US Dollar enjoyed a decent upside move against the Swiss Franc and closed above the 0.9800 handle. There was even a close above the 21 hourly simple moving average to trade as high as 0.9895.
The pair is currently correcting lower, and finding bids near a bullish trend line formed on the hourly chart of USDCHF at 0.9850. However, the most important support is near the 21 hourly simple moving average since it also positioned with the 23.6% Fib retracement level of the last leg from the 0.9549 low to 0.9895 high.
On the upside, a break above the last high of 0.9895 may open the doors for a move towards 0.9920.
US Monthly Budget Statement
Today in the US, the Monthly Budget Statement, which summarizes the financial activities of federal entities, disbursing officers, and Federal Reserve banks was released by the Financial Management Service.
The market was not expecting a reading of $-80B in Oct 2016, compared with the last reading of $33B. However, the result was above the forecast, as it came in at $-44B. The US Dollar was not impacted much after the release, but it looks like the greenback remained supported against most major currencies.
Overall, the USDCHF pair may trade a few pips lower in the short term, but could gain bids near 0.9820-10.
