USDCHF Long-Term Range (Jun 26, 2017)
USDCHF has sold off recently but it could find strong support at a long-term range bottom around the .9500-.9550 levels.
A bounce off this area could lead to a move back to the resistance at 1.0400 or at least until the mid-channel area of interest at .9900.
The 100 SMA is below the longer-term 200 SMA on the daily chart so the path of least resistance is to the downside. In that case, a break of support could be possible, sending the pair on a longer-term drop. Stochastic is also pointing down to show that sellers are in control of price action.
Economic data from the US turned out weaker than expected at the start of the week as headline and core durable goods orders both missed expectations. The former showed a 1.1% drop versus the projected 0.5% dip while the latter indicated a meager 0.1% uptick versus the projected 0.4% gain. Fed Chairperson Yellen's testimony is lined up next.
There have been no major reports out of Switzerland yet and none are due today. This signals that market sentiment and profit-taking could drive price action for the franc. The next major report is the UBS consumption indicator and it might show an improvement from the earlier 1.48 reading.
By Kate Curtis from Trader's Way