Key Highlights
- The US Dollar is trading in a major range with resistance near 0.9765 and support at 0.9600 against the Swiss Franc.
- There is a crucial bullish trend line with support at 0.9600 forming on the 4-hours chart of USD/CHF.
- Swiss Trade Balance for July 2017 posted a trade surplus of 3511M, better than the last 2,880M.
- Today, the Housing Price Index for July 2017 will be released, which is forecasted to increase by 0.4% (MoM).
USD/CHF Technical Analysis
The US Dollar seems to be trading in a major range with us d and support at 0.9600 against the Swiss Franc. The USD/CHF pair downsides are limited and supported by 0.9600.
Looking at the 4-hours chart, there is a crucial bullish trend line forming with support at 0.9600. The pair recently tested the trend line at 0.9601 and retreated higher.
On the upside, the most important resistance is near 0.9675, which is near the 100 simple moving average (H4). It also represents the 50% Fib retracement level of the last decline from the 0.9765 high to 0.9586 low.
The pair was already rejected once from 0.9675 and there are chances of USD/CHF retesting it in the near term. In a broader perspective, the pair remains in a long-term range of 0.9765-0.9600. Having said that, downsides are limited by 0.9600, and possibilities of USD/CHF trading higher are high.
Swiss Trade Balance
Today in Switzerland, the Trade Balance report for July 2017 was released by the Federal Customs Administration. The market was looking for a trade surplus of 2,880M compared with the last surplus 2764M.
The actual result was better, as there was a trade surplus of 3511M. Exports of goods and services in July 2017 were 18347M, less than the last revised 18799M. Imports of goods and services in July 2017 were 14836M, less than the last revised 16035M.
The result was mostly neutral, and could weigh on the Swiss Franc. The USD/CHF might trade towards 0.9675 where buyers will be tested. The H4 RSI needs to clear the 50 level to gain momentum and set the pace for USD/CHF towards 0.9675.
On the downside, the 0.9620 and 0.9600 are important support levels.
