Key Points
- The US Dollar mostly struggled to trade above the 0.9950 resistance against the Swiss Franc during the past 24 hours.
- There is a clear major resistance formed near 0.9950 on the hourly chart of the USDCHF pair.
- Today, the KOF Swiss Leading Indicator was released by the KOF Swiss Institute for Business Cycle Research.
- The outcome was above the forecast, as there was a rise from 101.6 to 104.7 in Oct 2016.
USDCHF Technical Analysis
The US Dollar attempted on many occasions to trade above the 0.9950 resistance against the Swiss Franc, but failed to break it. We can clearly see from the hourly chart of USDCHF that there is a crucial barrier near 0.9950, acting as a resistance.
The stated resistance is also coinciding with the 50% Fib retracement level of the last decline from the 0.9999 high to 0.9903 low. So, it represents a crucial barrier for an upside move.
On the downside, there is a bullish trend line formed on the hourly chart, which can be seen as a support area if the pair corrects lower. Overall, the pair may continue to trade in a range in the short term.
KOF Swiss Leading Indicator
Today in Switzerland, the KOF Swiss Leading Indicator, which is a joint survey with leading indicator which measures future trends of the overall economic activity was released by the KOF Swiss Institute for Business Cycle Research.
The market was aligned for an increase from the last reading of 101.3 to 101.8 in Oct 2016. However, the result was better, as there was a rise to 104.7. The report stated that “In October 2016, the KOF Economic Barometer, with a new reading of 104.7, pointed visibly above its long-term average. The strongest impulses contributing positively to the dynamics of the Barometer came from hospitality services and manufacturing. The only negative impacts came from the financial sector”.
This may again stop the US Dollar from gaining further traction, and may push the USDCHF pair down in the short term.
