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The US dollar looks like losing plot in the short term against the Swiss franc. The USDCHF is struggling to break an important resistance area, which is creating a lot of bearish pressure. The recent releases in the US were also not on the positive side including the industrial production data. There is one important release lined up today i.e. the US Producer Price Index which will be released by the Bureau of Labor statistics, Department of Labor. We need to see how the outcome shapes and affects the US dollar in the near turn. Any major disappointment might take the USDCHF pair lower moving ahead.
There was a crucial bullish trend line formed on the hourly chart of the USDCHF pair, which was broken earlier and the same trend line is acting as a hurdle for the pair. A key point to note is the fact that the 200 hourly moving average is also around the same level and adding to the resistance for the pair. There is a chance that the pair might spike a bit higher from the current levels to retest the broken support area where sellers are likely to appear again. The pair might even struggle around the 100 MA which is currently around the 0.9630 level. The hourly RSI is above the 50 mark, which is a bullish sign in the near term.
There is a very tiny chance of a move higher, as the momentum has started fading in the USDCHF pair. If at all, it climbs back above the 200 MA, then it could challenge the 0.9688 high.
Overall, one might consider selling rallies as long as the 200 MA holds.
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Posted By IKOFX Technical Team: Online Forex Broker
Website: http://ikofx.com/?affref=300012
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