The US dollar managed to gain bids against the Swiss franc recently and traded close to the 0.9350 level. The momentum looks to be in favour of the US dollar buyers, and if they gain traction then a move towards the 0.9400 is possible moving ahead. There are a couple of releases lined up today in the US, including the Economic Optimism Index by The Investor’s Business Daily (IBD) TechnoMetrica Institute of Policy and Politics (TIPP). Moreover, the US Factory orders will also be released by the US Census Bureau. Let us see how the outcome shapes and affects the US dollar in the near term. If it exceeds the forecast, then it might help the USDCHF pair moving ahead.
There is a crucial bullish trend line formed on the hourly chart of the USDCHF pair, which provided support to the pair on many occasions. The best part is the fact the highlighted trend line is now coinciding with the 100 hour moving average, which is a bullish sign in the short term. Currently, the pair is testing the 23.6% fib retracement level of the last leg from the 0.8933 low to 0.9342 high. The 38.2% fib retracement level is sitting around the mentioned trend line. So, if the USDCHF pair moves lower from the current levels, then it might find support around the 0.9190-0.9200 area.
On the upside, a break above the last high of 0.9342 might set the pair for a run towards the 0.9400 resistance zone.
Overall, one might consider buying dips in the USDCHF pair as long as it is trading above the 100 MA.
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Posted By Simon Ji of IKOFX
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