- The US Dollar declined heavily after a break of 0.9790 against the Swiss Franc, and traded towards 0.9690.
- The USD/CHF pair is currently correcting, but facing resistance near a bearish trend line at 0.9740 on the hourly chart.
- In Switzerland, the Trade Balance figure for April released by the Federal Customs Administration posted a surplus of 1.968B, lower than the forecast of 2.87M.
USD/CHF Technical Analysis
The US Dollar was under a lot of pressure recently, and moved below the 0.9825 and 0.9790 support levels against the Swiss Franc.
The USD/CHF pair even traded a few pips below 0.9700 and formed a low at 0.9690. Later, it started a short-term correction and moved above 0.9700.
It also climbed above the 23.6% Fib retracement level of the last decline from the 0.9824 high to 0.9690 low.
USD/CHF Hourly Chart
However, the pair is currently facing a major hurdle near a bearish trend line at 0.9740 on the hourly chart. The same trend line also coincides with the 38.2% Fib retracement level of the last decline from the 0.9824 high to 0.9690 low.
The pair may struggle to break 0.9740 in the short term. Above 0.9740, there is another bearish trend line at 0.9757, which is aligned with the 50% Fib retracement level of the last decline from the 0.9824 high to 0.9690 low.
So, we can say that there are many resistances on the way up like 0.9740, 0.9757 and 0.9790.
Swiss Trade Balance
Today in Switzerland, the Trade Balance figure for April was released by the Federal Customs Administration. The market was expecting a trade surplus of 2.87M, compared with the last 3.101B.
The actual result was lower than the forecast, as the trade surplus was 1.968B, and the last reading was revised to 3.038B.
Imports of goods and services were 14,181M, less than the last revised 16,608M. Moreover, the Exports of goods and services were 16,149M, less than the last revised 19,646M.
Overall, the USD/CHF pair may remain under pressure, as long as the 0.9740 and 0.9765 resistances are intact.