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The US dollar crashed against the Swiss franc recently as highlighted in earlier posts. However, it looks like that the US dollar buyers are trying to push the USDCHF pair higher in the near term. If we look at the 4 hour chart closely, then we can analyse how bearish sentiment is shaping for the pair. There is a lot of pressure on the Swiss franc sellers, which is likely to continue. There is an economic release lined up in the US, as the NAHB Housing Market Index will be released by the National Association of Home Builder. The market is expecting a minor rise from 57 to 58.

There is a critical bullish trend line formed on the hourly chart of the USDCHF pair, which is acting as a support for the pair and might continue to do so in the near term. Currently, the pair is struggling to clear the 61.8% fib retracement level of the last leg from the 0.9138 high to 0.8309 low. So, there is a chance of a minor dip from the current levels towards the highlighted trend line where the US dollar buyers might put up a fight. If they fail to defend the mentioned trend line, then it would call for sharp losses in the pair moving ahead. In that situation, a move back towards the 0.8500 is possible.

On the upside, next resistance is seen around the 0.8950 level, which if breached could open the doors for a test of the 0.90 level in the short term.

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

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