Key Points
- The US Dollar moved down sharply after failing to break the 0.9950-60 resistance against the Swiss Franc.
- The USDCHF pair broke a major support area at 0.9880 on the hourly chart to ignite sharp declines.
- Recently in the US, the Factory orders report for March 2017 (MoM) was released by the US Census Bureau.
- The result was below the forecast, as the Factory orders posted a rise of 0.2% in March 2017, which was less than the forecast of +0.4%.
USDCHF Technical Analysis
The US Dollar remained above the 0.9900 level for some time against the Swiss Franc, but was seen struggling to settle above the 0.9950-60 resistance area. As a result, a downside move was started, as the price broke the 0.9920 support area.
The downside move was accelerated, as the pair broke a major support area at 0.9880 on the hourly chart, which ignited a move below 0.9860.
The pair traded towards 0.9840 where it found support. It is currently consolidating and may trade towards the 23.6% Fib retracement level of the last decline from the 0.9947 high to 0.9845 low at 0.9969 where it could face sellers.
US Factory Orders
Recently in the US, the Factory orders for March 2017 was released by the US Census Bureau. The forecast was lined up for an increase of 0.4% in orders in March 2017, compared with the previous month.
The result was below the forecast, as the Factory orders posted a rise of 0.2% in March 2017, which was also a lot lower compared with the last revised reading of +1.2%. The report added that “New orders for manufactured durable goods in March increased $1.6 billion or 0.7 percent to $238.7 billion. This increase, up three consecutive months, followed a 2.3 percent February increase”.
Overall, the USDCHF pair may correct a few pips higher, but likely to face sellers near the 0.9865 or 0.9880 resistance levels.
