Key Points
- The US Dollar surged higher towards 0.9750 against the Swiss Franc before facing sellers.
- There is a crucial bullish trend line forming with support at 0.9650 on the hourly chart of USDCHF.
- Recently in the US, the Chicago Fed National Activity Index (CFNAI) for August 2017 was released by Federal Reserve Bank of Chicago.
- The outcome was below the forecast of 0.01, as there was a decline from the last revised reading of 0.03 to -0.31.
USDCHF Technical Analysis
The US Dollar traded higher recently towards the 0.9750 resistance against the Swiss Franc where it faced sellers and later moved lower. The USDCHF pair corrected lower and broke the 0.9700 support along with the 21 hourly simple moving average.
The pair traded as low as 0.9642 and currently resuming its uptrend. On the downside, there is a crucial bullish trend line forming with support at 0.9650 on the hourly chart.
On the upside, an initial resistance is near the 23.6% Fib retracement level of the last decline from the 0.9745 high to 0.9642 low followed by the 21 hourly SMA.
Chicago Fed National Activity Index
Recently in the US, the Chicago Fed National Activity Index (CFNAI) for August 2017 was released by Federal Reserve Bank of Chicago. The market was positioned for a minor increase from the last reading of -0.01 to 0.01.
The actual result was below the forecast of 0.01, as there was a decline from the last revised reading of 0.03 to -0.31. The report added that:
Two of the four broad categories of indicators that make up the index decreased from July, and two of the four categories made negative contributions to the index in August. The index’s three-month moving average, CFNAI-MA3, decreased to –0.04 in August from a neutral reading in July.
Overall, the USDCHF pair remains supported and likely to move higher slowly towards the 0.9700 level.
