The US Dollar after a decline towards 1.0080 against the Swiss franc recovered, but USDCHF is facing a crucial resistance near 1.0180.
USDCHF Forecast – Dollar Facing Tough Resistance Near 1.0180
· The US Dollar after a decline towards 1.0080 against the Swiss Franc started recovering.
· The USDCHF pair is currently trading higher, but facing a major resistance near 1.0180 in the form of a couple of bearish trend lines on the 4-hours chart.
· In the US recently, the JOLTS Job Openings report by the US Bureau of Labor Statistics was released, which came in at 5.522M in Nov 2016.
USDCHF Technical Analysis
The US Dollar was seen struggling this past week, as it traded towards 1.0080 against the Swiss Franc, where it just found support. The USDCHF pair started recovering, and managed to move above the 23.6% Fib retracement level of the last wave from the 1.0334 high to 1.0086 low.
However, the pair is currently facing a major resistance near 1.0180 in the form of a couple of bearish trend lines on the 4-hours chart. The same area also coincides with the 38.2% Fib retracement level of the last wave from the 1.0334 high to 1.0086 low.
Moreover, the 200 simple moving average on the same chart is at 1.0180. So, we can say that there are many obstacles near 1.0180 for the US Dollar. It won’t be easy for it to break higher. On the downside, there is a bullish trend line, which may act as a support near 1.0125.
Trade Idea – If you are looking to enter a buy trade, then consider it with a break and close above the highlighted resistance area near 1.0180 with a stop of around 20-25 pips.
Recently in the US, the JOLTS Job Openings report was published by the US Bureau of Labor Statistics. The market was expecting 5.555M in Nov 2016.
However, the result was a bit lower, as it came in at 5.522M in Nov 2016. The last reading was revised to 5.451M from 5.534M.
Overall, the USDCHF pair may continue to face sellers near 1.0180. A break above it could open the doors for a move towards 1.0220.