Capital Trust
Capital Trust
images

Dec 10, 2016

03:58 AM EDT


  • New York close
  • London close
  • Tokyo close
  • Sydney close
Market Analysis

Home » Featured » USDCHF – The Big Picture

USDCHF – The Big Picture

Posted by FXTimes in Featured - August 24th, 2015 1:02 pm GMT

dollar_2486524b

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.

USDCHF

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.

Share!Share on FacebookTweet about this on TwitterShare on LinkedInShare on Google+

No comments yet.

You must be logged in to post a comment.

Forex, Commodities, Indices

Daily Updates

Daily Updates


Get the latest fundamental analyses, technical analyses and the most up-to-date Forex news catered to your interests, everyday.