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The US dollar traded lower against the Swiss franc recently and moved toward the 0.9620 support area where it managed to find buyers. The USDCHF traded higher overnight after the economic releases in the US were on the positive side. The US dollar jumped against the Euro, Yen and the Swiss franc. Today, there is no major release lined up during the NY session. However, there are a few low-risk events lined up, including the US consumer spending data and the Economic Optimism Index, which will be released by the Investor’s Business Daily (IBD) TechnoMetrica Institute of Policy and Politics (TIPP).

please see chart attached ad post image

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The USDCHF pair is following an important bullish trend line on the 4 hour chart, which recently acted as a support on the downside. The US dollar buyers managed to push the pair slowly above the 100 and 200 hourly moving averages, which can be seen as a bullish sign in the near term. Currently, the USDCHF pair is trading around the 61.8% fib retracement level of the last leg from the 0.9686 high to 0.9614 low. So, there is a chance that the pair might correct lower moving ahead. In that situation, the pair might find support around the 100 MA which is sitting along with the 200 hourly MA. A break below the same might call for a retest of the highlighted bullish trend line.

On the upside, the next hurdle is around the 76.4% fib retracement level, followed by the last high of 0.9686. There is a possibility of a test of the 0.9700 handle moving ahead.

Overall, one might consider buying dips around the 100 MA as long as the pair is trading above the bullish trend line.

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Posted By Simon Ji of IKOFX Technical Team: Online Forex Broker
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