The USD/CHF pair is trading at 0.8590 at the time of writing. It is moving somehow sideways in the short term. Technically, after its massive sell-off, the rate could turn to the upside. Still, a new leg higher is far from being confirmed.
Fundamentally, the selling pressure remains higher as the US Retail Sales, Core Retail Sales, Industrial Production, Capacity Utilization Rate, Housing Starts, and Building Permits came in weaker than expected.
Tomorrow, the Switzerland Trade Balance and the US Unemployment Claims, Existing Home Sales, and CB Leading Index could have an impact.
USD/CHF 0.8613 Key Resistance!
From the technical point of view, the USD/CHF pair is trapped within a triangle pattern. It has registered a false breakdown with great separation below 0.8566 signaling exhausted sellers.
Now, it challenges the downtrend line which represents a dynamic resistance. The 0.8613 immediate high represents key resistance.
USD/CHF Outlook!
A bullish closure above 0.8613 is seen as a bullish signal. The weekly pivot point of 0.8700 represents the first upside target.
