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The US dollar was recently seen correcting lower against the Swiss franc as the 0.9800 resistance area acted as a monster hurdle for the USDCHF pair. The pair is currently testing an important short-term support area which if breached might ignite selling pressure in the USDCHF pair. There is a key release lined up during the NY session today i.e. the US NFIB Business Optimism Index will be released. The market is expecting it to rise by 0.5 points from 96.1 to 96.6. If at all the outcome comes in the negative zone, the US dollar sellers might push the pair lower.
There is a bullish trend line formed on the hourly chart of the USDCHF pair, which might act as a catalyst for the pair in the near term. The pair is currently testing the mentioned trend line and it looks like struggling to hold the same. It has breached the 38.2% fib retracement level of the last leg from the 0.9648 low to 0.9815 high, which can be considered as a warning sign. Moreover, the pair is also trading below the 100 hourly moving average. If the US dollar sellers manage to take the pair below the highlighted trend line, then it would open the doors for downside acceleration towards the 200 hourly moving average. The 61.8% fib retracement level of the last leg is also around the same area.
If the USDCHF pair climbs from the current levels, then the 100 MA might act as a resistance in the short term. A break above the same would negate the bearish sentiment on the pair.
Overall, one might consider selling with a break of the trend line as long as the pair is trading below the 100 MA.
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Posted By IKOFX Technical Team: Online Forex Broker
Website – http://ikofx.com
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