USDCHF Poised for Breakout Amid US Consumer Confidence News

FXOpen

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.

USDCHF Poised for Breakout Amid US Consumer Confidence News

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.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Commodities and European currencies Test Key Supports EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March Market Analysis: GBP/USD Dives While USD/CAD Gains Bullish Pace The US Currency Corrects After Recent Growth USD/JPY Price Analysis: Consolidation ahead of US News

Latest articles

How Do Grid Trading Strategies Work?
Trader’s Tools

How Do Grid Trading Strategies Work?

Grid trading stands as a distinctive strategy within the trading realm, offering a structured approach to navigating market volatility. By strategically placing buy and sell orders at predefined intervals, this method eschews the need to determine the market direction, instead

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold
Financial Market News

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of  FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

  • NIKKEI-225 Analysis Indicates Possibility

Forex Analysis

Commodities and European currencies Test Key Supports

On the eve of the Easter holidays, the main currency pairs have slightly slowed down the development of the main trends and are consolidating near key ranges, the breakdown of which could provoke a change in the vectors of medium-term

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.