Key Points
- The US Dollar fell sharply lower recently and moved below 0.9660 against the Swiss Franc.
- There was a break below a crucial bullish trend line at 0.9700 on the hourly chart of USDCHF.
- Today in the US, the S&P/Case-Shiller Home Price Indices for April 2017 was released by the Standard & Poor’s.
- The outcome was a bit on the lower side, as there was a rise of 5.7%, lower than the forecast of 8.9%.
USDCHF Technical Analysis
The US Dollar recently fell sharply lower by more than 100 pips and traded below the 0.9660 support against the Swiss Franc. The USDCHF pair declined heavily and settled below the 0.9640 support and the 21 hourly simple moving average.
The pair recently traded as low as 0.9591, and currently started to correct higher towards 0.9620. An initial resistance is towards the 23.6% Fib retracement level of the last decline from the 0.9732 high to 0.9591 low.
During the downside, there was a break below a crucial bullish trend line at 0.9700 on the hourly chart. The same trend could act as a resistance if the pair attempts a recovery above 0.9660.
S&P/Case-Shiller Home Price Indices
Today in the US, the S&P/Case-Shiller Home Price Indices for April 2017 was released by the Standard & Poor’s. The market was positioned for a major increase of 5.9% in April 2017, compared with the same month last year.
The actual result was on the lower side, as the index rose 5.7%, which was also on the lower side compared with the last 5.9%. The report added that “Data released today for April 2017 shows that home prices continued their rise across the country over the last 12 months”.
Overall, the USDCHF pair is likely to extend its decline and trade towards 0.9560 in the near term.
