- Swiss Franc gained heavily this week against the US Dollar, and it looks set for more gains.
- There is a triangle or we can say a flag pattern forming on the hourly chart of the USDCHF pair, which may ignite losses in the near term.
- The pair is below the 100 hourly simple moving average, which may increase the bearish pressure on USDCHF.
- Today, the Swiss Trade Balance released by the Federal Customs Administration posted a trade surplus of 4,071M in Feb 2016, better than the last time.
The US Dollar struggled a lot lately against the Swiss franc, as the latter one traded higher against most major currencies. The USDCHF pair traded lower towards the 0.9650 level, and currently a triangle or we can say a flag pattern is forming on the hourly chart.
The pair below the 100 hourly simple moving average, which means there is a chance of down move if USDCHF settles below the 50 SMA.
A break below the triangle support area can take the pair towards the last low of 0.9650, followed by 0.9620.
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 outcome was a positive one, as the trade surplus was 4,071M in Feb 2016, better than the last time.
Moreover, there was a slight revision for the last reading as well from 3,513M to 3,509M. In Feb 2016, the Exports of goods and services came in at 17,621M. And, the Imports of goods and services posted a reading of 13,550M.
Overall, the USDCHF pair may break down and trade below the triangle support area to ignite another downside move.