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The US dollar traded a touch lower against the Swiss franc recently, but it does not mean that the USDCHF pair’s trend has changed. It is still a good option to buy on dips in the near term. As long as the pair is trading above 0.9640 support area it might continue to trade higher. There is an important release lined up later during the NY session. The US Gross Domestic Product report will be released by the US Bureau of Economic. The market is expecting a minor decline this time from the last reading of 3.5% to 3.3%. Let us wait and see if the outcome can manage to exceed the expectation or not.
There was a monster bearish trend line formed on the hourly chart of the USDCHF pair, which was broken recently by the US dollar buyers. This break ignited a sharp upside in the pair as it traded towards the 0.9725 level. It is now correcting lower and might head towards the 50% fib retracement level of the last leg from the 0.9529 low to 0.9725 high. The most crucial sign to note is the fact that the mentioned fib level is coinciding with the broken trend line, 100 moving average and 200 moving average. So, the US dollar buyers might appear around the 0.9630 level if reached in the short term.
On the upside, the USDCHF pair might face hurdle around the 0.9700 handle. Any further gains might take the pair towards the last swing high of 0.9725.
Overall, one might consider buying dips as long as the pair is trading above the 100 MA.
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Posted By IKOFX Technical Team: Online Forex Broker
Website: http://ikofx.com
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