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.
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.
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.
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.
Trade global forex with the best ECN broker of 2021*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about making your money go further with FXOpen.
* FXOpen International, best ECN broker of 2021, according to the IAFT