Key Points
- US dollar failed to trade higher against the Swiss Franc, as it found resistance near 0.9600-20 levels.
- The 100 and 200 hourly simple moving averages acted as a barrier and prevented an upside move.
- There are a couple of bearish trend lines formed on the hourly chart, acting as a sell zone.
- Swiss Trade Balance released by the Federal Customs Administration posted a trade surplus of 3786M in May 2016, better than the forecast.
Technical Analysis
The US dollar tumbled against the Swiss Franc recently, as a couple of bearish trend lines formed on the hourly chart acted as a resistance and pushed the USDCHF pair down. Moreover, the 100 and 200 hourly simple moving averages acted as a hurdle for an upside move.
The pair is currently trading near the last swing low of 0.9795, which is acting as a support area. A break below it could ignite further losses in USDCHF in the short term.
On the upside, the highlighted resistance area in the chart holds the key for more gains in USDCHF.
Swiss Trade Balance
Today, the Swiss Trade Balance, which is a measure of balance amount between import and export was released by the Federal Customs Administration. The market was expecting a trade surplus of 2880M in May 2016, but the outcome was positive, as the surplus was 3786M.
The last trade surplus was also revised to 2,508M from 2,504M in May 2016. The result was definitely above the forecast, which helped the Swiss Franc to gain traction against the US dollar in the short term.
If the USDCHF pair breaks the 0.9570 support area, then a move towards the 0.9540 level is possible moving ahead.
