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The US dollar barely gained after better than expected US ISM manufacturing index. This is a signal that there is a chance of a correction in the US dollar against currencies such as the Euro and the Swiss franc. The economic releases in the Switzerland was also on the positive side recently, which raises the case of a retracement in the USDCHF pair. The pair broke an important support area, which is one more bearish sign in the short term. The US factory orders data will be published today, which is expected to decrease by 0.6%. Let us see how the outcome shapes and moves the US dollar or not in the near term.

There was a crucial bullish trend line formed on the hourly chart of the USDCHF pair, which was breached during the Asian session. Currently, the pair is flirting with the 38.2% fib retracement level of the last leg from the 0.9543 low to 0.9690 high. There is a chance that the pair might climb higher towards the broken trend line where the US dollar sellers are likely to appear again. In the short term, there is a possibility that the pair might head towards the 50% fib level which might act as a support. Any further downside could take the USDCHF pair towards the 100 hourly moving average which is currently at 76.4% fib level.

If at all the USDCHF pair manages to climb above the 0.9655 level, then it might test the 0.9700 resistance area moving ahead.

Overall, one might consider selling rallies as long as the pair stays below the broken trend line.

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Posted By IKOFX Technical Team: Online Forex Broker
Website: http://ikofx.com