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The US dollar again gained back traction and traded higher against most major currencies. The USDCHF pair was one of the best performers. There was one more reason for the rise in USDCHF, as the Swiss franc also traded lower. The pair traded above a critical resistance area and looks set for more gains in the near term. Today during the NY session, there is a major release in the US, as the Consumer Confidence will be released by the Conference Board. The forecast is slated for a decline from 96.4 to 96.0 in March 2015. If the outcome fulfils the expectation, then more gains are likely in USDCHF.

There is a monster bullish trend line formed on the hourly chart of the USDCHF pair, which provided support to the pair many times and likely to do so moving ahead. Recently, the pair managed to close above the 200 hourly simple moving average, which is a strong bullish sign. Currently, the pair is struggling to clear the 0.9700 resistance area, which presents a chance of it moving back lower. Immediate support is around the highlighted trend line, followed by the 23.6% fib retracement level of the last leg from the 0.9550 low to 0.9704 high. Only a break below the same might call for more losses in the near term.

If the USDCHF pair moves higher from the current levels, then a break and settle above the 0.9700 level could take it towards the 0.9740 level in the short term.

Overall, one might consider buying dips in the USDCHF pair as long as it stays above the highlighted trend line.

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