USDCHF Poised for Breakout Amid US Consumer Confidence News

The US Dollar (USD) inched lower against the Swiss Franc (CHF) on Wednesday, dragging the price of USDCHF to less than 1.0150 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 around 1.0133. A support may be noted near 1.0110, the trendline support ahead of 1.0078, the horizontal support area and then 1.0000, the confluence of psychological number as well as a major horizontal support area as demonstrated in the given below chart.

On the upside, the pair is expected to find a resistance around 1.0162, the trendline resistance area ahead of 1.0191, the swing high of the last major upside move and then 1.0200, the psychological number. The technical bias shall remain bullish as long as the 0.9549 support area is intact.

Consumer Confidence

Americans’ optimism about the economy came roaring back in November, hitting a nine-year high as the economy heads into the key holiday shopping season. The Conference Board said Tuesday its index of consumer confidence jumped to 107.1 in November after dropping to an upwardly revised 100.8 in October. Economists surveyed by The Wall Street Journal expected the index to rise to 101.8 in November. The results showed consumers shrugging off uncertainty ahead of the U.S. presidential election, as most people in the survey were contacted before Nov. 8. A small sample of respondents was polled following the election, with a cutoff date of Nov. 15.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair on a breakout below the trendline support appears to be a good strategy in short to medium term.'
Usman Ahmed

Usman Ahmed is an individual forex trader and market analyst. He holds a Masters of Business Administration (MBA) degree. His work includes fundamental and technical reports on various currency pairs, commodity futures and stock markets. His technical analysis features price action strategies.

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