Key Points
- The US Dollar made a nice upside move from the 0.9600 handle against the Swiss Franc.
- There was a break above two bearish trend lines with resistance at 0.9645 and 0.9675 on the hourly chart of USDCHF.
- Recently in the US, the Housing Price Index for June 2017 was released by the Federal Housing Finance Agency.
- The outcome was below the forecast, as there was a rise of 0.1%, less than the forecast of +0.4% (MoM).
USDCHF Technical Analysis
The US Dollar failed to settle below the 0.9600 handle against the Swiss Franc, and later started moving higher. The upside move in the USDCHF pair was decent, as it traded above the 0.9640 level and the 21 hourly simple moving average.
During the upside, the pair also cleared two bearish trend lines with resistance at 0.9645 and 0.9675 on the hourly chart.
The pair is currently trading near 0.9685 and remains supported. An initial support is around the 23.6% Fib retracement level of the last wave from the 0.9601 low to 0.9698 high. There is also a bullish trend line positioned at 0.9675 to provide support.
US Housing Price Index
Recently in the US, the Housing Price Index for June 2017 was released by the Federal Housing Finance Agency. The market was positioned for a minor increase of 0.4% compared with the previous month.
The actual result was below the forecast, as there was a rise of 0.1%, less than the forecast of +0.4%. It was also lower than the last revised increase of 0.3%. The report stated that:
For the nine census divisions, seasonally adjusted monthly price changes from April 2017 to May 2017 ranged from -0.5 percent in the Middle Atlantic division to +1.0 percent in the West South Central division. The 12-month changes were all positive, ranging from +4.0 percent in the Middle Atlantic division to +8.7 percent in the Pacific division.
Overall, the USDCHF pair is currently above a major support of 0.9675 and might continue to move higher.
