Market Sentiment – Neutral
Key Takeaways
US dollar hits weekly high vs Swiss Franc
US Existing Home sales remain flat in March
Richmond Manufacturing index climbs to 7
The dollar edged higher versus the Swiss Franc after the US Existing home sales and Richmond’s manufacturing index were released during yesterday’s New York session. The dollar rose to its highest level in nearly seven days against the Swiss franc, as the market sentiment got a lift post economic releases.
USDCHF upside pressures remain intact. Some traders, however, played down the possibility of USDCHF trading higher, and suggested that the rally from April 11, 2014 low was only corrective.
US Existing Home Sales and Richmond Manufacturing index
Yesterday, the US Existing Home Sales and Richmond’s manufacturing index were published by the National Association of Realtors and Federal Reserve Bank of Richmond respectively. The existing home sales remained flat in March, and slipped 0.2 percent to a seasonally adjusted annual rate of 4.59 million in March from 4.60 million in February. The highlight was the Richmond Manufacturing Index, which climbed to 7 from -7, beating the expectations of 0. Employment rose, while wages advanced at a slower rate, according to the report.
Technical Analysis
USDCHF has managed to form a solid bullish channel on the hourly timeframe. The pair failed to take out the channel resistance a number of times, but the positive is that the sellers have failed to match the number of attempts on the downside. Despite mixed economic data, USDCHF managed to trade higher and registered a new weekly high at 0.8858, and found resistance in the form of channel trendline. A break higher might take the pair towards the 61.8% Fibonacci retracement level of the last major drop.
There is a major trendline noted on the RSI, which might act as a catalyst for the pair. However, as long as the pair is tracking the channel more upside cannot be denied.
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