Key Points
- The US Dollar weakened below the 0.9900 level against the Swiss franc, and tested 0.9840.
- There are two bearish trend lines with resistance near 0.9880 formed on the hourly chart of USDCHF.
- In the US today, the Dallas Fed Texas Manufacturing Index for March 2017 will be released by the Federal Reserve Bank of Dallas.
- The market is expecting no major change in the index from the last reading of 24.5 in March 2017.
USDCHF Technical Analysis
The US Dollar declined heavily against the Swiss Franc and moved below the 0.9900 support area. The USDCHF pair tumbled and tested the 0.9830-40 support area where it found buyers, and started a short-term recovery.
On the upside, the pair faces two bearish trend lines with resistance near 0.9880 on the hourly chart. The same trend line resistance also coincides with the 23.6% Fib retracement level of the last decline from the 0.9959 high to 0.9836 low.
Any further gains could push the pair towards the 50% Fib retracement level of the last decline from the 0.9959 high to 0.9836 low at 0.9900 where sellers may appear and take a stand to protect more gains. On the downside, a break below 0.9830 might call for a move towards 0.9800.
Dallas Fed Texas Manufacturing Index
Today in the US, the Dallas Fed Texas Manufacturing Index for March 2017 will be released by the Federal Reserve Bank of Dallas. The index that helps in the assessment of the state’s factory activity is aligned to post no major change in March 2017 from 24.5.
If the real outcome misses the forecast of 24.00, there is a chance of USDCHF extending declines below 0.9836.
Overall, if the USDCHF pair corrects higher towards 0.9880, it could face sellers and move down once again.
