The US Dollar (USD) inched higher against the Swiss Franc (CHF) on Monday, increasing the price of USDCHF to more than 1.0000 following the release of some key economic news. The technical bias remains bullish because of a higher high in the recent upside rally.
Technical Analysis
As of this writing, the pair is being traded near 1.0032. A support can be noted around 0.9950 (the 50% fib level as well as trendline support area) as demonstrated in the given below daily chart. A break and daily closing below the 0.9950 support shall incite renewed selling interest, validating a downside move towards the 0.9830 support zone.
On the upside, the pair is expected to face a hurdle near 0.1187, the high of the bearish pin bar that was emerged few days ago. If the price invalidates the pin bar low, then we may expect a test of 1.0312 which is the trendline resistance zone. The technical bias shall remain bullish as long as the 0.9861 support area is intact.
CB Leading Index
The economic calendar on Friday was light and the only release pertaining to the pair was the Conference Board’s leading index figures. There was a rise of 0.6% in January to beat the analyst forecast for a gain of 0.5% and a prior figure of the same.
Trade Idea
Considering the overall technical and fundamental outlook, buying the pair around current levels appears to be a good strategy in short to medium term.
Trade global forex with the best ECN broker of 2021*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about making your money go further with FXOpen.
* FXOpen International, best ECN broker of 2021, according to the IAFT
