Visit our website – Ikofx

The US dollar corrected a bit lower against a few major currencies including the Euro and the British pound. However, it gained traction against the Swiss franc and the Canadian dollar. There are many releases lined up today during the NY session including the consumer confidence and the services PMI. The most important one is the speech from the fed chairwoman Janet Yellen. A lot of volatility is expected around her speech and we can witness a lot of swing moves in the US dollar. The USDCHF pair is sitting around an important level, which means that if the US dollar gains traction, then the pair might rocket higher.

There is a major bearish trend line formed on the hourly chart of the USDCHF pair, which might act as a pivot zone for the pair. The pair failed on many occasions around the mentioned trend line so there is a chance of a move towards the 38.2% fib retracement level of the last leg from the 0.9372 low to 0.9524 high. However, the most important support is around the 50% fib level, which is coinciding with the 100 hour simple moving average. A break above the highlighted trend line might call for more gains in the pair, but if it fails to break higher it might head back towards the last swing low.

On the upside, a break above the highlighted trend line might take the pair towards the 0.9550 resistance area, followed by the 0.9580 level.

Overall, one might consider buying dips in the USDCHF pair as long as it is trading above the 100 hour MA.

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