Key Points
- The US Dollar is trading with a positive bias, and positioned well above the 1.00 support.
- There is a bullish trend line with support at 1.0050 on the hourly chart of USDCHF, which can be seen as a buy zone.
- In Switzerland, the Trade Balance report for Jan 2017 was released by the Federal Customs Administration.
- The result was better than the forecast, as the trade surplus was 4.730M in Jan 2017, compared with the 3.030M forecast.
USDCHF Technical Analysis
The US Dollar after a decline towards 0.9960 against the Swiss Franc this past week found support. The USDCHF pair started an upside move, and managed to move back above the 1.00 resistance. The pair also moved above the 50% Fib retracement level of the last decline from the 1.0119 high to 0.9964 low.
It looks like the pair is in a solid uptrend, and may rise towards the 1.0090 level soon. On the downside, there is a bullish trend line with support at 1.0050 on the hourly chart.
Overall, it looks like buying dips near the trend line support at 1.0060-50 may be considered for a move towards 1.0090 or even 1.0105.
Swiss Trade Balance
Today in Switzerland, the Trade Balance report for Jan 2017 was released by the Federal Customs Administration. The market was expecting the balance amount between import and export to post a surplus of 3.030M in Jan 2017, compared with the previous 2.694M (revised).
The result was better than the forecast, as the trade surplus was 4.730M in Jan 2017. The report added that “Following a decline the previous year, foreign trade grew again in 2016, with chemicals and pharmaceuticals shaping the trend. Exports climbed by a total of 3.8% (real: -0.8%) to a record high of CHF 210.7 billion. However, the two other large groups – machinery and electronics, and watches – were unable to participate in the growth. Imports increased by 4.1% (real: +1.2%) to CHF 173.2 billion”.
Overall, the outcome was positive, which may ignite a minor downside in USDCHF, but that can be seen as a buy opportunity near 1.0050.
