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The US dollar continued to gain bids against the Swiss franc and it is most likely to continue heading higher. Recently, a lot of pressure was noticed on the Euro, which in turn ignited upside in the USDCHF pair. Let us see how the pair trades as there is a possibility of more upside in the near term. The CB consumer confidence is a major releases lined up today in the US, which might cause swing moves in the USDCHF pair. Today, the USDCHF blasted above the 0.9900 handle as the pressure mounted on the US dollar sellers.

There is a bullish trend line formed on the hourly chart of the USDCHF pair, and as long as the highlighted trend line holds more upside is likely moving ahead. There is a key point to note from the chart that the same bullish trend line is aligned perfectly with the 100 hour moving average. The 0.9900-20 represents a major resistance and that is the reason why there is a possibility that the pair might correct lower in the near term. However, in that situation, the pair is likely to find buyers around the 100 hour MA. Only a break and close below the mentioned MA might call for more losses may be towards the 200 hour MA.

On the upside, the 0.9920 is an immediate resistance, which if breached might open the doors for more upside moving ahead. A break above the same could take the USDCHF pair towards 0.9950.

Overall, one might consider buying dips in USDCHF as long as the pair is below the 100 MA.

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