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USDCHF Analysis – US Dollar Facing Monster Resistance Near 0.9940

  • The US Dollar was under a lot of pressure this past few days, as it moved below 0.9960 against the Swiss Franc.
  • The USDCHF pair is currently struggling to break a monster resistance near 0.9940 in the form of two bearish trend lines on the 4-hours chart.
  • The US Trade Balance for March 2017 released by the Bureau of Economic Analysis and the U.S. Census Bureau posted a trade deficit of $-43.7B, less than the forecast of $-44.5B.

USDCHF Technical Analysis

The US Dollar was in deep trouble during the past few days, as it moved below 1.00, 0.9980 and 0.9960 against the Swiss Franc.

The USDCHF pair traded as low as 0.9890 where buyers appeared and protected further declines. The pair is currently trying to recover and trading above 0.9920.

It is also above the 23.6% Fib retracement level of the last decline from the 0.998 high to 0.9890 low.

USDCHF Hourly Chart

USDCHF Technical Analysis

However, it is facing a monster resistance near 0.9940 in the form of two bearish trend lines on the 4-hours chart.

The same trend is also near the 50% Fib retracement level of the last decline from the 0.998 high to 0.9890 low.

In short, the 0.9940-50 area is a critical resistance zone for USDCHF, and the pair may fail to break it in the near term.

US Trade Balance and Initial Jobless Claims

Today in the US, the Trade Balance for March 2017 was released by the Bureau of Economic Analysis and the U.S. Census Bureau. The market was expecting the trade deficit to be $-44.5B in March 2017, compared with the last $-43.6B.

The actual result was better than the forecast, as the US trade Balance deficit was $-43.7B, less than the forecast of $-44.5B.

The Initial Jobless Claims for the week ending April 29 was released by the US Department of Labor today. The market was expecting a decline from 257K to 247K. The actual result was better, as the Initial Jobless Claims declined to 238K.

The report added that the “4-week moving average was 243,000, an increase of 750 from the previous week’s unrevised average of 242,250“.

Overall, the USDCHF pair has a real chance of gaining pace, but it won’t be easy for buyers to break 0.9940-50.

About Aayush Jindal 109 Articles
With over 10 years of experience and still counting, Aayush posses great technical and fundamental analysis skills in the Forex, Cryptocurrency and Financial Markets. His Analysis are well-know and famous for engaging with viewers easily. He is from IT background with a lot of passion in the Forex and Cryptocurrency Arena.


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