USD/CHF has been making lower lows at the end of each trading day for a couple of days now. It seems the bears are declaring victory on the pair. However, how long will their party last?
The earlier released Swiss Retail Sales y/y came in at 3.2% against the 3.5% value forecasted by the market. In addition, the Swiss Factory PMI was released at 46.7 against the 49.2 value forecasted by the market. As such, these poor economic data have weighed down on the performance of the Swiss Franc across the board.
As earlier mentioned, technical analysis on the USD/CHF reveals it’s trading in a strong downtrend. If the pair continues with this move, it may encounter support at 0.9450 before moving lower. On the other hand, if it starts retracing its gains, the pair may encounter resistance at 0.9620 before moving higher.
USD/CHF is on a downtrend. Thus, traders who were short in it should continue holding on to their position until the next support area. However, they should be wary of any upside price corrections.
DISCLOSURE & DISCLAIMER: THE ABOVE IS FOR INFORMATIONAL PURPOSES ONLY AND NOT TO BE CONSTRUED AS SPECIFIC TRADING ADVICE. RESPONSIBILITY FOR TRADE DECISIONS IS SOLELY WITH THE READER.