USDCHF Rallies After Upbeat Factory Orders Report

FXOpen

The US Dollar (USD) extended upside movement against the Swiss Franc (CHF) on Wednesday, for the third consecutive day, increasing the price of USDCHF to more than 0.9770 following some importance economic releases. The technical bias already remains bullish due to a Higher High and Higher Low in the recent wave on daily chart.

Technical Analysis

As of this writing, the pair is being traded around 0.9779. A hurdle may be noted around 0.9800, the psychological number ahead of 0.9864, the swing high of the last major upside rally as demonstrated in the following daily chart.

USDCHF Rallies After Upbeat Factory Orders Report

On the downside, the pair is likely to find a support around 0.9677, the 76.4% fib level ahead of 0.9561, the 61.8% fib level and then 0.9467, the 50% fib level. The technical bias will continue to be bullish as long as the 0.9150 support area is intact.

US Factory Goods

New orders for U.S. factory goods rebounded strongly in June on robust demand for transportation equipment and other goods, a hopeful sign for the struggling manufacturing sector. The Commerce Department said on Tuesday new orders for manufactured goods increased 1.8 percent after declining 1.1 percent in May. The Commerce Department also said orders for non-defense capital goods excluding aircraft – seen as a measure of business confidence and spending plans – increased 0.7 percent instead of the 0.9 percent rise reported last month. Meanwhile manufacturing inventories increased a solid 0.6 percent, which was more than the government assumed in its second-quarter GDP snapshot published last week.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels could be a good strategy in short to medium term if we get a bearish pin bar or bearish engulfing candle on four-hour or daily timeframe.

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This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

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