Key Points
- The US Dollar made a nice upside move and traded above 0.9720 resistance against the Swiss Franc.
- The USDCHF pair is currently attempting a break above a bearish trend line at 0.9760 on the hourly chart.
- Recently in the US, the Durable Goods Orders for April 2017 was released by the US Census Bureau.
- The outcome was better than the forecast, as there was a decline of 0.7% in April 2017, less than the forecast of -1.4%.
USDCHF Technical Analysis
The US Dollar after a decline towards 0.9700 against the Swiss Franc formed a decent support and started an upside move. The USDCHF pair moved higher, and broke the 21 hourly simple moving average and the 50% Fib retracement level of the last decline from the 0.9777 high to 0.9696 low.
The pair is currently attempting a break above a bearish trend line at 0.9760 on the hourly chart.
The trend line resistance also coincides with the 76.4% Fib retracement level of the last decline from the 0.9777 high to 0.9696 low. A break above it may call for a test of the 0.9777 high. Above 0.9777, the 0.9800 level may be tested.
US Durable Goods Orders
Recently in the US, the Durable Goods Orders for April 2017 was released by the US Census Bureau. The market was positioned for the Durable Goods Orders to decline by 1.4% in April 2017
The result was better than the forecast, as there was a decline of 0.7% in April 2017, less than the forecast of -1.4%. However, it was a lot lower when compared with the last revised reading of +2.3%. The report mentioned that “New orders for manufactured durable goods in April decreased $1.6 billion or 0.7 percent to $231.2 billion, the U.S. Census Bureau announced today. This decrease, down following four consecutive monthly increases, followed a 2.3 percent March increase“.
Overall, USDCHF pair may dip a few pips towards 0.9740-30, but likely to break higher in the near term.
