Key Points
- The US Dollar after trading as high as 1.0304 against the Swiss Franc found sellers, and traded lower.
- There was a bullish trend line formed on the hourly chart of USDCHF, which was cleared at 1.0260 for more losses.
- Recently in the US, the Pending Home Sales report was released by the National Association of Realtors.
- The result was on the lower side, as there was a decline of 2.5% in Nov 2016, compared with the previous month.
USDCHF Technical Analysis
The US Dollar was seen trading lower recently against the Swiss franc after a failure to break the 1.0304 level. The USDCHF pair traded lower, and broke a bullish trend line formed on the hourly chart at 1.0260.
The pair is currently trading near another support trend line at 1.0235. A break below it could ignite more losses in USDCHF in the short term.
One may consider a sell trade with a break below the trend line or 1.0230 support.
US Pending Home Sales
Recently in the US, the Pending Home Sales, which h is a leading indicator of trends of the housing market in the US was released by the National Association of Realtors.
The market was positioned for an increase of 0.5% in Nov 2016, compared with the previous month. However, the result was on the lower side, as there was a decline of 2.5% in Nov 2016. In terms of the yearly change, there was a decline of 0.4% in Nov 2016, compared with Nov 2015. The report added that “Pending home sales dipped in November to their lowest level in nearly a year as the brisk upswing in mortgage rates and not enough inventory dispirited some would-be buyers”.
Overall, it looks like there is a chance of USDCHF breaking the second trend line support at 1.0235 for more losses.
