USD/CHF Reaching a Major Resistance Area!
The pair looks ready to rebound from the level of 0.9060, which is not surprising because the pair found resistance from the area at least twice in the past week.
Nor does it help the dollar bulls that 9060 is the R1 of today’s record pivot points.
The cherry on top of the sweet setup is a bearish divergence on the 1 hour time frame.
USD/CHF for one hour Planned by TV
We know the dollar has been raining pips all week thanks to concerns about the US debt ceiling, a tightening outlook for the FOMC, and rising US Treasury yields.
But that was earlier this week.
The news is that Republican lawmakers are leaving their offices today to start Memorial Day weekend. Dimming expectations for a debt ceiling deal over the weekend could lead to some profit-taking between USD buyers or CHF sellers.
At the same time, traders can stay on the sidelines ahead of the release of closely watched US data such as the US Preliminary GDP report and Core PCE price index report.
Profit taking in the next trading sessions could send USD/CHF higher on a journey back to the mid-channel area of 0.9035.
And if today’s GDP release and tomorrow’s US core PCE price report encourage dollar selling, we could see USD/CHF drop to lower inflection points like 0.9020 or 0.9000.
what do you think? How low can USD/CHF fall before buyers step in again?
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