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The US dollar surged higher recently against the Swiss franc, as the USDCHF pair traded above the 0.9150 level. The economic releases were also on the positive side. The US durable goods orders data and CB consumer confidence were the latest releases. Both the releases impressed the US dollar investors, and registered better than expected readings. The CB consumer confidence registered a reading of 92.4, up from 90.3. This lifted the US dollar across the board. The EURUSD pair also dropped heavily and traded close to the 1.3150 support level.

There is a critical bullish trend line on the hourly chart for the USDCHF pair, which could act as a catalyst for the pair in the short term. The mentioned trend line is moving along with the 100 hourly moving average, so it increases the importance of the trend line. Currently, the pair is heading towards the highlighted trend line, which is just around the 38.2% fib retracement level of the last move higher from the 0.9122 low to 0.9185 high. So, there is a chance that the pair might find buyers around the 0.9160-55 levels. Only a break and close below the 100 moving average might change the trend and increase the chances of a major correction.

On the upside, initial resistance can be seen around the last high of 0.9185. If the US dollar sellers fail to defend the mentioned level, then a run towards the next hurdle of 0.9200-10 is possible in the short term.

Overall, buying dips looks like a good option if the pair continues to trade above the 100 moving average.

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