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The US dollar managed to recover most of its lost ground against the Swiss franc. The USDCHF pair traded higher and cleared an important resistance area to set new daily highs. There is a release lined up in Switzerland today, as the Foreign Currency Reserves which are the foreign currency deposits and bonds held by Swiss National Bank will be released. Let us see how the reserves are in March 2015, compared the last reading of 509.3B. Any major disappointment might push the USDCHF pair higher in the short term. There are a couple of releases lined up in the US as well today, which could impact USDCHF.
There was a crucial bearish trend line formed on the hourly chart of the USDCHF pair, which stalled the upside on many occasions but finally the US dollar buyers managed to gain traction and broke the stated trend line. However, the pair was seen struggling around the 100 hourly simple moving average, which caused a downside reaction in USDCHF. The pair corrected lower, and currently finding bids around the 38.2% fib retracement level of the last leg from the 0.9479 low to 0.9604 high. The mentioned fib level is also coinciding with the broken trend line, which presents a chance of a move back higher moving ahead. On the upside, the 100 and 200 hourly SMA’s remain key for more gains.
If the USDCHF pair moves lower from the current levels, then a break below the 38.2% level might take it towards 0.9520.
Overall, one might consider buying dips in the USDCHF pair as long as the pair is above the broken trend line.