- The US Dollar remains bearish against the Swiss franc, and recently broke a major support at 0.9955.
- There are two bearish trend lines with resistance at 0.9975 and 0.9990 on the hourly chart.
- Today, the Philadelphia Fed Manufacturing Index for April 2017 will be released by the Federal Reserve Bank of Philadelphia with an expectation of a decline from 32.8 to 25.0.
USDCHF Technical Analysis
The US Dollar is on a declining path against most its peers, including the Swiss Franc with a move below 1.00. The USDCHF pair traded lower by roughly 100 pips from the 1.0050 high. Recently, the pair told a few important support levels like 0.9980 and 0.9955.
The pair even moved towards the 1.236 extension of the last wave from the 0.9952 low to 0.9990 high at 0.9943. However, I think there are more losses likely once there is a break below 0.9940.
USDCHF Hourly Chart
The pair may even trade close to the 1.618 extension of the last wave from the 0.9952 low to 0.9990 high at 0.9928.
On the upside, there are many resistances, starting 0.9955. The mentioned level was a support earlier, and may now act as a resistance around 0.9950-60. Moreover, there are two bearish trend lines with resistance at 0.9975 and 0.9990 formed on the hourly chart.
So, we can say there are many hurdles on the way up for the pair, starting 0.9950 up to 0.9990. As long as there is now close above 1.00, the pair may continue to trade lower.
The hourly RSI is at 33, and showing no signs of a recovery at the moment.
Fundamentals – Fed’s Beige Book and Philadelphia Fed Manufacturing Index
Recently, the US saw the release of the Fed’s Beige Book, which highlighted that “Employment expanded across the nation and increases ranged from modest to moderate during this period”. Another key point was the mention that “Economic activity increased in each of the twelve Federal Reserve Districts between mid-February and the end of March”.
The US Dollar was not impressed, as it tumbled to 0.9960 versus the Swiss Franc, and EURUSD traded above 1.0720.
Today, the Philadelphia Fed Manufacturing Index for April 2017 will be released by the Federal Reserve Bank of Philadelphia. It is expected to decline from 32.8 to 25.0, which can be another setback for the US Dollar in the short term.