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The US dollar lost lust against a few major currencies recently including the Swiss franc and the Euro. The USDCHF pair failed to trade above a crucial resistance area recently, which ignited a down-move in the near term. The recent economic releases in the US were mixed, which sort of halted the upside in the pair. There are a few releases lined up in the NY session today, including the US building permits and housing starts report. If the outcome misses the forecast, there is a possibility that the USDCHF pair might head lower.
The USDCHF pair is following a bearish trend line on the hourly chart, which acted as a resistance recently and pushed the pair lower again. The most important point is that the 100 hourly moving average is also sitting along with the mentioned trend line which increases the significance of the 0.9660-80 resistance area. If the pair climbs higher from the current levels, then it might struggle to clear the stated resistance zone. The 38.2% fib retracement level of the last leg from the 0.9709 high to 0.9617 low is also sitting around the highlighted zone. The hourly RSI is well below the 50 level, pointing that more losses are feasible in the short term. A break above the trend line and resistance area would negate the bearish theory.
On the downside, the last low of 0.9617 holds the key, as a break below the same might call for a move towards the 0.9580-60 support area.
Overall, one might consider selling rallies 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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