- The US Dollar started a correction after trading towards 0.9725 against the Swiss Franc.
- The USD/CHF pair broke a short-term bullish trend line at 0.9685 on the hourly chart, but found support near another trend line at 0.9670.
- In the US, the Monthly Budget for May 2017 released by the Financial Management Service posted $-88.0B, less than the forecast of $-86.5B.
USD/CHF Technical Analysis
The US Dollar had a decent upside run towards 0.9725 against the Swiss Franc where it faced sellers and started a downside move.
The USD/CHF started a correction and moved below the 23.6% Fib retracement level of the last wave from the 0.9640 low to 0.9725 high.
During the downside, the pair even broke a short-term bullish trend line at 0.9685 on the hourly chart.
USD/CHF Hourly Chart
However, the downside move was prevented by another trend line at 0.9670, and the 61.8% Fib retracement level of the last wave from the 0.9640 low to 0.9725 high.
The pair is now recovering, and already moved above the 23.6% Fib retracement level of the last decline from the 0.9726 high to 0.9669 low.
At the moment, the pair is finding resistance near 0.9695-0.9700. The mentioned levels are a major hurdle, coinciding with the 50% Fib retracement level of the last decline from the 0.9726 high to 0.9669 low. There is a chance of a minor dip towards 0.9685 before the pair makes an attempt to trade above the 0.9700 level. Above 0.9700, the 0.9725 high might be tested in the near term.
US Monthly Budget
Today in the US, the Monthly Budget for May 2017 was released by the Financial Management Service. The market was expecting the budget to decline $-86.5B, compared with the last $182.0B.
The actual result was lower than the forecast, as the Monthly Budget came in at $-88.0B. Today, the NFIB Research Foundation will release May’s 2017 Optimism Index. It is forecasted to post an increase from the last reading of 104.5 to 105.2.
If the actual result is positive, the USD/CHF pair may trade back towards the 0.9720-25 area, which is a major resistance for the US Dollar buyers.