Key Points
- The US Dollar remains in an uptrend against the Swiss Franc and currently trading above 1.0080.
- There is a range pattern formed on the hourly chart of USDCHF with resistance on the upside at 1.0120.
- Today, the Swiss Trade Balance was released by the Federal Customs Administration.
- The outcome was lower, as the trade surplus was 2,678M in Oct 2016, which was less than the forecast of 3,890M.
USDCHF Technical Analysis
The US Dollar traded higher recently to break the 1.00 and the 1.0080 resistance levels against the Swiss Franc. The USDCHF pair is currently trading in a range with resistance on the upside at 1.0120 and support on the downside at 1.0070.
The pair is currently above the 21 hourly simple moving average, which may act as a support if the pair corrects lower from the current levels.
One may consider buying dips in USDCHF near the 21 hourly SMA or look for a break above the range resistance for a move towards the next hurdle at 1.0160.
Swiss Trade Balance
Today during the London session, the Trade Balance, which is a measure of balance amount between import and export was released by the Federal Customs Administration.
The market was looking for a trade surplus of 3,890M in Oct 2016. However, the result was on the lower side, as it came in at 2,678M. Looking at the imports, there was a rise from the last revised reading of 14,508M to 15,128M. The exports declined from the last reading of 18,833M to 17,806M. Overall, the report was not encouraging, and may ignite further downsides in the Swiss Franc in the short term.
If the USDCHF pair manages to close above the 1.0120, there are chances of further gains.
