Key Points
- The US Dollar after declining towards the 0.9525 level against the Swiss Franc found buyers.
- The USDCHF pair broke a bearish trend line with resistance at 0.9565 on the hourly chart.
- Today in Switzerland, the Trade Balance figure for June 2017 was released by the Federal Customs Administration.
- The outcome was below the forecast, as the trade surplus was 2,813M, less than the forecast of 2,890M.
USDCHF Technical Analysis
The US Dollar was under a bearish pressure this week and traded below the 0.9600 support against the Swiss Franc. The USDCHF pair declined below 0.9550 and formed a new low at 0.9524 before staring a recovery above the 21 hourly simple moving average.
The pair moved above the 23.6% Fib retracement level of the last decline from the 0.9636 high to 0.9524 low, which is a positive sign.
The pair also breached a bearish trend line with resistance at 0.9565 on the hourly chart. The next hurdle on the upside is around the 50% Fib retracement level of the last decline from the 0.9636 high to 0.9524 low at 0.9580. Above 0.9580, the 0.9600 handle can be tested.
Swiss Trade Balance
Today in Switzerland, the Trade Balance figure for June 2017 was released by the Federal Customs Administration. The market was positioned for a trade surplus of 2,890M compared with the last 3,400M.
The actual result was below the forecast, as the trade surplus was 2,813M, less than the forecast of 2,890M. Moreover, the last reading was revised down from 3,400M to 3,388M. Exports of goods and services were 18,738M, down from the last revised 19,623M. Imports of goods and services were 15,926M, down from the last revised 16,235M.
Overall, there is a chance of USDCHF moving higher back towards the 0.9600 handle in the near term.
