FXOpen
The US Dollar (USD) inched higher against the Swiss Franc (CHF) on Monday, increasing the price of USD/CHF to more than 0.9725 amid some key economic releases. The technical bias seems to turn into bearish because of a Lower High in the recent upside rally on the daily chart.
Technical Analysis
As of this writing, the pair is being traded near 0.9735. A support may be noted around 0.9662, a major horizontal support level ahead of 0.9600, the confluence of a psychological number as well as the swing low of the latest major downside move as demonstrated in the following daily chart.
On the upside, the pair is likely to face a hurdle near 0.9837, the swing high of the recent upside rally ahead of 0.9900, the confluence of a horizontal resistance as well as the psychological number and then 0.9958, the swing high of the latest major upside rally.
US Manufacturing
Factory activity expanded in June at the fastest clip in more than a year, an encouraging sign that American manufacturers are gaining traction. The Institute for Supply Management’s index increased to 53.2 last month, the highest since February 2015 and exceeding the most optimistic projection in a Bloomberg survey of economists, from 51.3 in May, data from the Tempe, Arizona-based group showed Friday. Readings higher than 50 indicate growth in the industry, and the Bloomberg survey median called for the June index to hold at 51.3. Economists’ estimates ranged from 50 to 52.5.
Trade Idea
Considering the overall technical and fundamental outlook, buying the pair on dips appears to be a good strategy in short to medium term.
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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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