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The US dollar traded lower against the Swiss franc yesterday towards the 0.9300 support area, but later managed to trade back higher. The 0.9300-10 level is proving to be very tough to break, as the US dollar sellers tried a couple of times but failed. However, the momentum is lagging and indicators starting to show signs of a short-term top. There is an important event lined up later today during the NY session in the US. The Fed interest rate decision is scheduled, which is likely to cause a lot of swing moves in the US dollar. There can be some profit taking moves ahead of the release, so one need to be very careful trading around the mentioned event.
There is a sliding channel formed on the hourly chart of the USDCHF pair, which served as a support yesterday. Currently, the pair is heading towards the channel resistance trend line. The most important part is that the channel resistance is now just above the 100 and 200 moving averages. So, there is a monster resistance around the 0.9350 level. The US dollar buyers are likely to struggle around the stated level. There is a chance that the pair might fail around the current levels, and move lower towards the 0.9300 level again. In that situation, we need to see whether the pair can break the channel support area or not.
Alternatively, if the USDCHF pair breaks the channel and moves higher, then the US dollar bulls might challenge the previous high of 0.9394 again.
One might attempt a sell trade around the 0.9350 level with a very small stop and try to aim the channel support area.
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Posted By IKOFX Technical Team: Online Forex Broker
Website: http://ikofx.com/?affref=300012
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