- – The US Dollar fell sharply against the Swiss Franc recently after clearing the 1.0060 support area.
- – The USD/CHF pair broke a major bullish trend line with support at 1.0080 on the 4-hours chart.
- – The Swiss Trade Balance for Feb 2017 released by the Federal Customs Administration posted a trade surplus of 3.11B, less than the forecast of 3.850B.
Swiss Trade Balance
Today in Switzerland, the Trade Balance for Feb 2017 was released by the Federal Customs Administration. The market was expecting the balance amount between import and export to post a surplus of 3.850B in Feb 2017, compared with the previous 4.73B.
The outcome a bit lower than the forecast, as the Swiss trade surplus in Feb 2017 was 3.11B. The last reading was revised to 4.83B. The Swiss Exports of goods and services in Feb 2017 declined by 2.2%, compared with the last -3.6%. Moreover, the Swiss Imports of goods and services in Feb 2017 increased 2.9%, compared with the last -3.9%.
Overall, the result neutral, and might not have a negative impact on the Swiss franc, which means USD/CHF might continue heading lower towards 0.9920.
USD/CHF Technical Analysis
The US Dollar was under a lot of bearish pressure recently against the Swiss Franc, as it moved below 1.00. Earlier, the USD/CHF failed to hold an important support area near 1.0060. It resulted in a sharp drop of more than 100 pips.
During the downside move, the pair broke a major bullish trend line with support at 1.0080 on the 4-hours chart. It also moved below the 100 simple moving average on the same chart at 1.0085. It traded as low as 0.9942 from where it recovered. However, the recovery failed near the 23.6% Fib retracement level of the last drop from the 1.0170 high to 0.9942 low.
The pair is once again moving down, and might retest the recent low of 0.9942. And, if the US Dollar sellers remain in action, there is even a chance of a break below 0.9940 for a move towards 0.9920 or 0.9900. On the upside, the 1.00 is the most important resistance area where sellers might appear.Tags: Swiss Franc, Swiss Trade Balance, US Dollar, USD/CHF Technical Analysis