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The US dollar traded higher and followed a nice bullish trend against the Swiss franc. The USDCHF pair recently climbed above the 0.9900 level, but failed to gain strength. There were a couple of releases in the US and Switzerland, which kind of lifted the USDCHF pair in the near term. There are again a couple of releases lined up today, including the Swiss unemployment rate and the US wholesale inventories report. Let us see how these releases affect the USDCHF pair in the near term and help it or not. A break above the recent high might call for more gains in the near term.

There is a major bullish trend line formed on the hourly chart of the USDCHF pair, which might act as a pivot area if the pair moves lower from the current levels. Currently, the 0.9900-10 area is acting as a resistance for the pair, and there is a chance of a pullback from here. The highlighted trend line might come into play and might protect downsides in the near term. A break below the same might call for more losses moving ahead may be towards the 23.6% fib retracement level of the last leg from the 0.9672 low to 0.9914 high. Any further losses might take the pair towards the 50% fib level, which is at 0.9795.

If AUDUSD pair gains momentum and breaks the recent high, then a move towards the 0.9950 is possible in the near term, followed by 0.9980.

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

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