- – The US Dollar after declining as low as 1.0007 against the Swiss Franc started a recovery, but struggled near 1.0040 and 1.0060.
- – There are two bearish trend lines with resistance at 1.0040 on the hourly chart of USD/CHF, acting as a hurdle for an upside move.
- – Earlier today, the US total Net TIC Flows for Feb 2017 released by the US Department of Treasury posted $19.3B, compared with the last revised reading of $121.2B.
US Total Net TIC Flows
Today in the US, the total Net TIC Flows for Feb 2017 was released by the US Department of Treasury. The market was positioned for a reading of around $80-$85B in Feb 2017, compared with the last $110.4B.
The outcome was on the lower side, as total Net TIC Flows came in at $19.3B. The last reading was revised up from $110.4B to $121.2B. On the other hand, the Net Long-Term TIC Flows came in at $53.4B, compared with the last revised reading of $5.9B. The report added that “Foreign residents increased their holdings of long-term U.S. securities in February; net purchases were $35.9 billion. Net purchases by private foreign investors were $41.1 billion, while net sales by foreign official institutions were $5.2 billion”.
Overall, the US Dollar is struggling, and it looks like it won’t be easy for USD/CHF to gain pace above the 1.0040 and 1.0060 resistance levels.
USD/CHF Technical Analysis
The US Dollar recently fell close to the 1.00 handle against the Swiss Franc, and traded as low as 1.0007. Later, the USD/CHF pair started a recovery, and moved above the 38.2% Fib retracement level of the last decline from the 1.0089 high to 1.0007 low.
However, the recovery could not last long, as the pair faced sellers near two bearish trend lines with resistance at 1.0040 on the hourly chart. Moreover, the 61.8% Fib retracement level of the last decline from the 1.0089 high to 1.0007 low also acted as a resistance at 1.0058 and prevented further gains.
At the moment, the pair is slowly moving down along with the trend lines and the 100 hourly simple moving average. If the current trend continues, there is a chance of USD/CHF retesting the last swing low of 1.0010.Tags: Swiss Franc, US Dollar, USD/CHF Technical Analysis