The Swiss Franc is trading lower against most of its counterparts, including the US dollar. One of the main reasons for the same is the disappointing Swiss trade balance data, which was published by the Federal Statistical Office earlier during the London session. The market was expecting a reading of 2.970B, but the outcome missed the expectations and registered a reading of 1.377B. Moreover, the previous reading was revised up from 2.774B to 2.849B. So, the overall decline was on the higher side. The USDCHF pair spiked higher above the 0.9000 level moments ago.

There is an ascending channel forming on the hourly chart for the USDCHF pair. As of writing, the pair is testing the channel resistance trend line, which might act as a resistance in the short term. There is a chance that the pair might move a bit lower from the current levels and test the channel support trend line one more time. If that happens, then the US dollar buyers could reappear around the 0.8990 support level, and might push the pair higher again. The most important thing is that the pair has settled above the 76.4% fib level of the last drop from the 0.9036 high to 0.8855 low. This means that the chances of the pair testing the previous high of 0.9036 is quite high.

It is also possible that the pair might not fall from the current levels. In that situation, the pair might break the channel resistance zone and test the last high of 0.9036. It would be difficult for the US dollar buyers to push the pair above the mentioned level, as there are several high-risk events lined up later during the US session.

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Posted By IKOFX Technical Team: Online Forex Broker
Website: ikofx.com