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The US dollar traded lower at the end of last week and on Monday, but later managed to gain bids against most major currencies, including the Euro and Swiss franc. The USDCHF pair recently traded lower towards the 200 hourly moving average, but the US dollar bulls managed to protect downside in the pair and pushed it back up. There is no major release lined up during the NY session in the US, which means we might witness ranging moves in USDCHF for some time. The only low-risk release is NFIB business optimism index which is expected to decline by 0.2 points from 95.3 to 95.1.

There is an important bullish trend line formed on the hourly chart of the USDCHF pair, which acted as a support recently. The most important point to highlight here is that the 200 hourly MA was also sitting around the same trend line when the pair bounced. So, a rejection from a critical confluence support area means a lot and signals more gain in the near term. The pair has now closed back above the 100 hourly MA, which is another bullish sign. Currently, the pair is testing the 61.8% fib retracement level of the last leg from the 0.9737 high to 0.9615 low. So, there is a chance of a minor pullback which can be seen as a buying opportunity.

On the upside, a break of the 61.8% fib level could take the pair towards the last high of 0.9737 where we might witness a reaction in the USDCHF pair.

Overall, one might consider buying dips rallies around the 100 MA as long as it trades above the 200 MA.

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