Key Points
- The US Dollar after trading near 0.9820 for some time against the Swiss Franc found sellers and traded down.
- The downside in the USDCHF pair found support around a bullish trend line on the hourly chart.
- Today, the Switzerland Trade Balance figure was released by the Federal Customs Administration.
- The outcome was on the lower side, as the trade surplus was 3,025M in August 2016.
USDCHF Technical Analysis
The US Dollar moved down recently against the Swiss Franc after failing to break the 0.9820 level. The USDCHF pair moved down and broke the 21 hourly simple moving average. However, the downside was protected by a bullish trend line on the hourly chart.
The trend line support is acting as a barrier and providing bids, which increases the chance of an upside move.
However, the broken 21 hourly simple moving average may now act as a resistance area for the pair moving ahead.
Switzerland Trade Balance
Earlier during the London session, the 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 3,270M in August 2016.
However, the trade surplus was on the lower side with a reading of 3,025M. There was also Economic Forecasts released by the Swiss State Secretariat for Economic Affairs. It highlighted that “The Swiss economy has been able to regain momentum in recent quarters. Although the Brexit referendum did lead to increased international uncertainty, it has not resulted in any major volatility on financial markets to date. The Expert Group currently anticipates a continuation of the moderate recovery in the Euro area and the rest of the world.”
Overall, the US Dollar remains supported as long as it is above the trend line support.
