USD/CHF – Can US Dollar Gain Momentum Vs Swiss Franc?
Aayush Jindal
Key Highlights
The US Dollar after a continuous slide against the Swiss Franc found support near 0.9600.
The USD/CHF pair recently broke a major bearish trend line formed on the 4-hours chart at 0.9660.
Recently in Canada, the Housing Starts for May 2017 released by the Canadian Mortgage and Housing Corporation posted 194.7K, versus the forecast of 205K.
In the US, the Initial Jobless Claims (June 2) released by the US Department of Labor posted a decrease from 255K to 245K.
USDCHF Technical Analysis
The US Dollar was under a lot of pressure lately against the Swiss Franc, and dived by more than 200 pips towards 0.9600. Let’s see whether USD/CHF can recover going forward.Recently, the pair formed a decent support base above 0.9600, and started correcting higher. During the upside move, it broke the 23.6% Fib retracement level of the last drop from the 0.9807 high to 0.9613 low.There was also a break above a major bearish trend line formed on the 4-hours chart at 0.9660. At the moment, the pair is struggling to clear a major resistance at 0.9700. The same level also coincides with the 38.2% Fib retracement level of the last drop from the 0.9807 high to 0.9613 low.If the pair manages to trade above 0.9700, the next hurdle could be the 100 simple moving average (H4) at 0.9725.On the downside, there is a decent support base forming at 0.9640. As long as the pair is above the stated support, it can trade further higher above 0.9700.
US Initial Jobless Claims
Recently in the US, the Initial Jobless Claims for the week ending June 3 was released by the US Department of Labor. The forecast was lined up for a decrease from 248K to 240K.The actual result was mixed, as there was a decrease to 245K. However, the decline was of 10K, as the last reading was revised up from 248K to 255K. The 4-week average now stands at 242K, which is higher by 2.25K from the previous week’s revised average reading of 239,750.The report further added that “advance number for seasonally adjusted insured unemployment during the week ending May 27 was 1,917,000, a decrease of 2,000 from the previous week's revised level. The previous week's level was revised up 4,000 from 1,915,000 to 1,919,000”.Overall, the result was mixed, but the market sentiment seems to be improving for USD/CHF above 0.9640.Going forward, today’s US Wholesale inventories figure for April 2017 will be released. If the US Dollar buyers manage to gain momentum, the USD/CHF pair could trade above 0.9700-10 in the near term.
Recently, the pair formed a decent support base above 0.9600, and started correcting higher. During the upside move, it broke the 23.6% Fib retracement level of the last drop from the 0.9807 high to 0.9613 low.There was also a break above a major bearish trend line formed on the 4-hours chart at 0.9660. At the moment, the pair is struggling to clear a major resistance at 0.9700. The same level also coincides with the 38.2% Fib retracement level of the last drop from the 0.9807 high to 0.9613 low.If the pair manages to trade above 0.9700, the next hurdle could be the 100 simple moving average (H4) at 0.9725.On the downside, there is a decent support base forming at 0.9640. As long as the pair is above the stated support, it can trade further higher above 0.9700.
The report further added that “advance number for seasonally adjusted insured unemployment during the week ending May 27 was 1,917,000, a decrease of 2,000 from the previous week's revised level. The previous week's level was revised up 4,000 from 1,915,000 to 1,919,000”.Overall, the result was mixed, but the market sentiment seems to be improving for USD/CHF above 0.9640.Going forward, today’s US Wholesale inventories figure for April 2017 will be released. If the US Dollar buyers manage to gain momentum, the USD/CHF pair could trade above 0.9700-10 in the near term.