USD/CHF recovers lost ground, turns flat at 0.9625

Having dipped below 0.9600 handle and posting a session low at 0.9594, the USD/CHF pair reversed majority of its losses and is now trading nearly unchanged from yesterday's close, around 0.9620-25 band.

The pair benefitted from an unexpected fall in Switzerland’s trade balance. According to the report, released by Federal Statistical Office on Tuesday, showed Swiss Trade Balance fell to a seasonally adjusted 2.930 billion in July, from downwardly revised 3.510 billion recorded in June.

Moreover, a broad based pull-back in the greenback, as measured by the overall US Dollar Index, provided additional boost to the major's recovery from session low. 

Next on tap would be US economic releases, which include - new home sales data and Richmond Manufacturing Index, later during NY trading session.

How strong has the move been?

The hourly FXStreet OB/OS Index is showing neutral conditions, alongside the FXStreet Trend Index which is slightly bearish. At the time of writing, RSI is neutral at 60.69, up from 51.78 at the last hour close, while ADX is trending at 37.26, up from 24.84 previous.

Meanwhile, daily RSI is in neutral territory at 40.72. On the hourly USD/CHF chart, the 200 SMA is declining and currently at 0.9611, down from the previous hour close at 0.9661. On average, the exponential closing price for the past 20 days is 0.9706, with the trend indicating a continuation lower ahead.

Price levels have to be considered

Next resistance can be seen at 0.9633 (Weekly Classic PP), 0.9635 (Daily High) and 0.9649 (Weekly High). Next support to the downside can be found at 0.9617 (Hourly 20 EMA), 0.9605 (Hourly 100 SMA), 0.9599 (Daily Classic S1), 0.9599 (Yesterday's Low) and 0.9593 (Daily Low).