Key Points
- The US Dollar after a sharp decline found support near 0.9785 against the Swiss Franc.
- There was a break above a major bearish trend line with resistance at 0.9800 on the hourly chart of USDCHF.
- Recently in the US, the Services Purchasing Managers Index (PMI) for Nov 2017 (Prelim) was released by Markit Economics.
- The outcome was below the market forecast as there was a decline in the PMI from 55.3 to 54.7.
USDCHF Technical Analysis
The US Dollar declined heavily this past week and traded below 0.9860 against the Swiss Franc. The USDCHF pair was under a lot of pressure and it also broke the 0.9800 handle to close below the 21 hourly simple moving average.
The pair traded as low as 0.9786 and later started an upside correction. It moved above a major bearish trend line with resistance at 0.9800 on the hourly chart. At present, it is testing the 0.9815 resistance and the 21 hourly simple moving average.
The pair has to settle above the 21 hourly SMA and break the 23.6% Fib retracement level of the last decline from the 0.9947 high to 0.9786 low for further gains in the near term.
US Services PMI
Recently in the US, the Services Purchasing Managers Index (PMI) for Nov 2017 (Prelim) was released by Markit Economics. The market was looking for the PMI to increase from 55.3 to 55.5.
The actual result was below the market forecast as there was a decline in the PMI from 55.3 to 54.7. Moreover, the US PMI monthly Composite posted a decline from the last reading of 55.2 to 54.6, but both are well in the expansion levels.
Overall, the USDCHF pair might soon break 0.9815 and the 21 hourly SMA to gain further in the near term.
