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The US dollar traded toward the 1.0210 level against the Swiss franc where it just managed to hold the downside. It has now closed below an important support area which means there is a bearish pressure emerging on the USDCHF pair. There was no major release in the US and Switzerland recently, which is why there was no major action in USDCHF. There are a couple of releases lined up today, which might create some moves. Let us see how the US dollar trades moving ahead, and whether sellers manage to take it a bit lower in the near term or not.

There is a critical bearish trend line formed on the hourly chart of the USDCHF pair, which might act as a barrier for the US dollar buyers moving ahead. Currently, the pair is testing the 100 hour moving average and struggling to clear the same. Moreover, the same area coincides with the 38.2% fib retracement level of the last leg from the 1.0215 high to 1.0116 low. However, there is a chance of a spike higher in the near term towards the highlighted trend line which is around the 50% fib level. The hourly RSI is trying to move above the 50 level, which is a positive sign. We need to see how the pair reacts around the stated trend line if it reaches there.

On the downside, initial support is around the swing low of 1.0110. A break below the same might take the pair below the 1.0100 level.

Overall, one might consider selling rallies in the USDCHF pair as long as the pair is trading below the trend line.

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