USD CHF on Target for Test of 1.0660

The USD CHF weakened on Thursday as traders bought the Swiss Francfollowing news that Switzerland’s trade surplus increased sharply inApril.  Charts indicate the next downside target is 1.0660.

The USD CHF weakened on Thursday as traders bought the Swiss Franc following news that Switzerland’s trade surplus increased sharply in April. Although the increase in surplus was due to a steep decline in imports, traders must feel that the Swiss National Bank has taken enough steps to turn around the export market in the future.

The SNB is expected to leave interest rates unchanged at its next meeting on June 18, but it is still concerned about Swiss Franc appreciation versus the Euro.

Technically, the downtrend continued on Thursday as the market continued to post lower lows and lower highs. Once again this pair could not break through a key price level at 1.0973. The current chart pattern indicates this market is poised to continue down to the next major price target at 1.0660.

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