Key Points
- The US Dollar surged higher recently against the Swiss Franc, and currently approaching a major break.
- There is a monster ascending channel pattern formed on the hourly chart of USDCHF, which sellers are attempting to break.
- In the US today, the Chicago Fed National Activity Index (CFNAI) will be released by the Federal Reserve Bank of Chicago.
- The market is not expecting any major change in the Chicago Fed National Activity Index from the last reading of 0.16.
USDCHF Technical Analysis
The US dollar climbed higher against the Swiss franc recently and tested the 0.9650 level where it found offers and started to move down. There is a monster ascending channel pattern formed on the hourly chart of USDCHF, which is almost cleared by sellers during the recent downside move.
If the pair successfully closes below the highlighted channel support area, then there are chances of more losses in the near term.
If the pair moves down, an initial support is at 23.6% Fib retracement level of the last wave from the 0.9541 low to 0.9652 high. Any further losses may take the pair towards the 21 hourly simple moving average, which is also around the 50% Fib retracement level of the last wave from the 0.9541 low to 0.9652 high.
Chicago Fed National Activity Index (CFNAI)
Today in the US, the Chicago Fed National Activity Index (CFNAI), which is a monthly index designed to gauge overall economic activity and related inflationary pressure was released by Federal Reserve Bank of Chicago.
The market is not expecting any major change from the last reading of 0.16. So, we need to see how the outcome shapes up in the short term.
Overall, the US dollar looks like at a risk of a breakdown versus the Swiss Franc based on the channel pattern highlighted in the chart.
