- – The US Dollar after struggling to clear the 0.9690-0.9700 levels against the Swiss Franc moved down.
- – The USD/CHF pair is about to settle below a crucial bullish trend line with support at 0.9650 on the hourly chart.
- – Today in Switzerland, the Industrial Production report for Q2 2017 was released by the Swiss Statistics.
- – The outcome was above the forecast, as there was an increase in production by 2.9% (QoQ).
Swiss Industrial Production
Today in Switzerland, the Industrial Production report for Q2 2017 was released by the Swiss Statistics. The market was expecting the Industrial Production to increase by around 1% compared with the previous quarter.
The actual result was above the forecast, as there was an increase in production by 2.9%. The last reading was also revised down from -1.6% to -1%. In terms of the yearly change, there was an increase of 2.8%, which was more than the last revised -4.2%. The report added that:
Construction production increased by 6.1% in 2nd quarter 2017 in comparison with the same quarter a year earlier. Production rose by 3.9% in building, civil engineering also registered an increase (+10.4%). Lastly, specialised construction activities registered an increase of 6.0% in their production.
Overall, the USD/CHF pair might continue to move down and could even test the 0.9600 handle in the near term.
USD/CHF Technical Analysis
The US Dollar made a couple of attempts to break the 0.9690-0.9700 levels against the Swiss Franc. However, the USD/CHF pair failed to settle above the 0.9700 and started a downside move below the 0.9680 level.
The pair traded below the 23.36% Fib retracement level of the last wave from the 0.9600 low to 0.9697 high. However, the most important break was below the 100 hourly simple moving average and a crucial bullish trend line with support at 0.9650 on the hourly chart.
The pair has also breached the 50% Fib retracement level of the last wave from the 0.9600 low to 0.9697 high, which is a bearish sign. If the recent trend line break is real, the pair might continue to trade lower towards 0.9600.
Selling rallies in the short term towards 0.9660-80 can be considered with a stop above 0.9700.Tags: Swiss Franc, US Dollar, USD/CHF Technical Analysis, USDCHF