Finally a breakout on this one!
Can dollar traders sustain a big move on USD/CHF with the upcoming catalysts this week?
I’ve had this USD/CHF triangle on my radar for quite some time, and it looks like we’re catching the beginnings of a breakout move!
The pair has closed below the descending triangle support around the .9550 minor psychological mark, hinting that a selloff that’s the same height as the pattern is in the works.
Can USD/CHF really tumble by roughly 500 pips from here?Technical indicators don’t seem to be so sure yet, as the moving averages are oscillating to reflect consolidation. Meanwhile, Stochastic is hovering around the oversold region to show that sellers are taking it easy.
The top-tier releases from the U.S. economy this week might change the game, though.
Don’t forget that we’ve got NFP Friday comin’ right up, which means that leading jobs indicators due in the coming days would likely spur dollar volatility.
So far we’ve got the ISM manufacturing PMI pointing to another slowdown in industry growth, with its jobs component contracting for the third straight month. Now that might be hinting at a weaker than expected NFP figure, which would be dollar bearish.
Of course we have yet to see the results of the ISM services industry survey later today, as well as the JOLTS job openings and Challenger job cuts figures later in the week.
Better keep your eyes peeled for a slew of downbeat readings since these could keep USD/CHF grinding lower while market watchers price in NFP expectations.
Good luck and good trading!
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