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The US dollar traded lower against the Swiss franc Intraday, and lost a lot of gains. There was no major economic release causing the decline in the USDCHF pair. We can call it a profit taking move, but we need to be careful, as there are several support areas on the way down for the pair. The US JOLT’s job openings data will be published later during the NY session, which might not cause major moves in the USDCHF pair. There were some pairs which were affected recently, including EURUSD and AUDUSD. Both were seen trading higher due to the weakness in the US dollar.
There is a monster bullish trend line on the hourly chart of the USDCHF pair, which might act as a solid catalyst for the pair. Yesterday, the pair traded very close to the mentioned trend line and even spiked below the 100 hourly moving average. However, it managed to bounce back from the 0.9580 support area, and closed above the 100 hourly moving average. If the pair gains momentum again, then it might climb towards the 0.9640 level in the coming sessions. The only bearish signal as of now is that the RSI is below the 50 level. It needs to settle above the stated level to gain momentum.
Alternatively, if the US dollar sellers manage to break the trend line and support area, then a move towards the 200 hourly moving average would be on the cards. So, the next level of interest could be around 0.9550.
Overall, one might consider buying around the mentioned trend line as long as the pair is above it.
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Posted By IKOFX Technical Team: Online Forex Broker
Website: http://ikofx.com
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