USDCHF – The Big Picture

Technical Bias: Bearish

Key Points

• Swiss Franc continued to strengthen against the US Dollar, and likely to test 0.9300 moving ahead.
• There is a monster support aligned around the stated level, which might prevent any additional downsides.
• In the US, the Chicago Fed National Activity Index (CFNAI), released by Federal Reserve Bank of Chicago increased from the last revised reading of -0.07 to 0.34 in July 2015.

Technical Analysis

The Swiss Franc enjoyed a solid bullish run against the US Dollar, as the USDCHF pair traded lower and broke a couple of important support areas. The pair breached the 100 and 200-day simple moving averages, which is a bearish sign and suggests that the pair might continue to trade lower.

There is a bullish trend line on the downside waiting to act as a support, and might prevent additional losses.

If the CHFJPY pair moves higher from the current levels, then the last broken 100-day SMA might act as a resistance for the pair in the near term.

Chicago Fed National Activity Index (CFNAI)

Earlier during the NY session, there was a minor release in the US. The Chicago Fed National Activity Index (CFNAI), which is a monthly index designed to gauge overall economic activity and related inflationary pressure was published by Federal Reserve Bank of Chicago. The outcome was better compared with the forecast, as the Chicago Fed National Activity Index (CFNAI) rose from the last revised reading of -0.07 to 0.34 in July 2015.

The report highlighted that “Led by improvements in production-related indicators, the Chicago Fed National Activity Index (CFNAI) rose to +0.34 in July from –0.07 in June. Two of the four broad categories of indicators that make up the index increased from June, and three of the four categories made positive contributions to the index in July”.

Trade Idea

We can attempt a sell trade if the CHFJPY trades closer to the 100-day SMA.
By fxtimes.com