Last week saw the USD strengthen significantly following the deviation from the US Dollar Index (DXY) at 101.50.
I mentioned this in Saturday’s Weekly Forex Forecast video.
The DXY is testing the 103.50 confluence of resistance today, a significant moment for currencies and risk markets.
So it’s no surprise to see a currency pair like USDCHF testing a similar resistance at 0.9280.
That’s the top of a descending channel from November 21st.
A look at USDCHF and DXY makes things pretty straightforward for the dollar this week, as a daily close above these resistance levels will confirm the breakout.
As for USDCHF, a daily close above channel resistance at 0.9280 will expose 0.9360 and potentially 0.9480.
It might look obscure from the daily time frame, given how choppy the Swiss franc can sometimes be.
But the USDCHF monthly time frame clarifies things.
Notice how 0.9480 has served as a monthly pivot since April 2021.
That level also coincides with DXY at 105.60, the target for the dollar index following a daily close above 103.50.
Traders should also keep an eye on 0.9360, as it will attract sellers on the way up.
But first, USDCHF and DXY need to clear their respective resistance levels. See the weekend video for details on the dollar index and other pairs.
Until then, 103.50 DXY and 0.9280 USDCHF are key resistance.
