The price of USDCHF rose on Tuesday following the emergence of a classic bullish pin bar near channel support. The technical bias is bullish due to a HH and HL in the current wave on daily chart. The pair is expected to be traded within the upward slope channel in short term.
US Consumer Confidence
The Consumer Board of the United States is scheduled to release the Consumer Confidence report today during the early New York session. According to the average forecast of different economists, the consumer confidence registered 100.00 reading in July as compared to 101.4 points in the month before. Generally speaking, higher consumer confidence reading is considered positive for the world’s largest economy thus a worse than expected actual outcome might spur short term selling pressure in the price of USDCHF and vice versa.
As of this writing, the pair is being traded around 0.9617. A support may be noted around 0.9529, the low of the yesterday’s bullish pin bar and channel support as demonstrated in the following daily chart. A break and daily closing below the channel support could incite renewed selling pressure, validating a dip towards the 0.9150 support area.
On the upside, the pair is expected to face a hurdle near 0.9632, the intra-day high of yesterday ahead of 0.9710, the channel resistance and then 0.9862, the high of last major upside rally. The technical bias will remain bullish as long as the 0.9150 support area is intact.
Considering the huge bullish pin bar which emerged yesterday around the channel support, buying the pair around current levels appears to be a wise move. The trade should however be stopped out on a daily closing below the channel support as described above.