FxWirePro: Healthy Swiss trade balance to prop up currency – USD/CHF to extend dips

Switzerland has postede good set of trade balance numbers today, it is increased from previous 2.86B to the current 3.05B to beat the forecasts at 2.51B. The country exported 141.5 tons of gold in September, which is just shy of 19% less than in the previous month, as data from the customs authorities show.

There were also some more striking changes: exports to India for instance plunged by two thirds to just 23 tons, whereas exports to China climbed by 28% to a six-month high of 21.7 tons.

Swiss National Bank leaves monetary policy unchanged, the SNB is leaving the target range for the three-month Libor unchanged at between -1.25% and - 0.25%. The interest rate on sight deposits with the SNB remains at - 0.75%.

Technical Roundup:

It has been a losing streak for dollar against Swiss franc about one and half months or so. The current prices on weekly chart have fallen below moving average curve, this would signal us that the prevailing bearish trend to prevail for some more weeks.

While RSI has been converging these price slumps, the current RSI on weekly chart is trending at 48.0405.

To confirm this bearish view, %D crossover on slow stochastic curves has maintaining above 75 levels which is again signals us selling pressures are intensified. On daily charts, even though these curves have bottomed below oversold zone, there no clues of %K crossover. So on daily terms bears have been well leading the show.