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The US dollar was seen correcting a bit lower against the Euro and the Swiss franc yesterday. The USDCHF pair climbed as high as 0.9379 recently and now correction lower. However, this can only be seen as a part of retracement, and we cannot judge whether the US dollar has placed a short term top against the Swiss franc. The reason for this minor correction may be a profit taking move. Moreover, the US JOLT’s job openings data was published yesterday, which missed the mark. The forecast was of 4.72M, but the outcome came in at 4.67M. Let us look at the technical charts and try to analyse where the pair is heading next.
There is a kind of a flag pattern forming on the hourly chart of the USDCHF pair, which is acting as a hurdle for the pair on the upside. Currently, the pair is trading around the 23.6% Fibonacci retracement level of the last bull leg from the 0.9176 low to 0.9379 high. It is also heading towards the 100 hourly moving average, which is right around the flag support trend line. So, if the pair moves lower and tests the mentioned support area around the 0.9310-00 levels, then the US dollar buyers are likely to appear to hold the downside in the pair. A break below the stated level could take the pair towards the 50% fib retracement level.
On the upside, initial resistance can be seen around the flag resistance trend line. A break above the same might take the pair towards the last high of 0.9379, and possibly towards the 0.9400 area.
Overall, one might consider buying around the 0.9310 level if the pair manages to hold the 100 hourly moving average.
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Posted By IKOFX Technical Team: Online Forex Broker
Website: http://ikofx.com
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