- US Dollar looks like forming a corrective rally against the Swiss Franc and may trade lower.
- The USDCHF pair is currently trading near a major bullish trend line formed on the hourly chart, which holds the key for more losses moving ahead.
- Swiss Trade Balance released by the Federal Customs Administration posted a trade surplus of 3,144M in November 2015, less than the forecast of 3,820M.
- The USDCHF pair looks like under the bearish pressure, and if sellers gain control more losses are likely.
The USDCHF pair is currently correcting lower after testing the 0.9995 resistance area. There is a bullish trend line formed on the hourly chart, which is acting as a support and preventing a downside break. The trend line is also coinciding with the 200 hourly simple moving average.
However, a key point to note is that the pair is now below the 100 and 50 MA, which is a bearish sign. Moreover, the hourly RSI is also below the 50 level, calling for more losses.
On the upside, then an initial resistance can be around the 100 MA.
Swiss Trade Balance
Today, the Swiss Trade Balance, which is a measure of balance amount between import and export was released by the Federal Customs Administration. The forecast was slated for a trade surplus of 3,820M in November 2015. However, the outcome was a bit disappointing, as the trade surplus came in at 3,144M.
Imports of goods and services were more compared with the last revised reading and came in at 15,119M. Moreover, the Exports of goods and services were a bit less and came in at 18,263M.
Overall, there was nothing to cheer for the Swiss Franc buyers. However, the sentiment is favoring USDCHF sellers and it they gain traction a move below the trend line and support area is possible moving ahead.