The greenback extended upward movement against the Swiss franc on Friday, taking the price to more than 0.9670. Buyers and sellers both are hesitant to trade ahead of the US economic releases.
Technical Analysis
During the initial trading hours on Friday, the bulls remained active and dragged the price up to 0.9671 from the opening price of 0.9634. As of this writing, the pair is being traded around 0.9644. The near term resistance lies at 0.9670, the 23.6% fib level. The stated level hindered the pair on various events this November. Another important resistance can be noted around 0.9687, the October 10 high. 0.9741, the high of November 7 is another resistance which the pair may test again to print a new high for 2014.
On the downside, 0.9626 is the critical support that is confluence of trend line and 38.2% fib level. Another support can also be seen around 0.9590, the psychological number and 50% fib level.
After printing the new highs for 2014 on 7th November, the current week remained overwhelmed by the bearish pressure. However, the overall bias is still bullish because of higher lows on the daily chart.
Retail Sales
The US Census Bureau is due to release retail sales today in the US session. The sales figure remains at 0.2% as compared to the -0.3% of the month before, as projected by different analysts. Being a measure of consumer spending, a high reading is considered bullish for the greenback. Thus a better than expected reading will spur a renewed buying interest in USD/CHF.
Reuters/Michigan Consumer Sentiment Index
The Reuters Consumer Sentiment Index is expected at 87.5 points for this November as compared to the 86.9 for the previous month. Generally speaking, a higher reading is considered positive for the US Dollar. Thus a better than expected figure will produce a bullish momentum in the price of USD/CHF.
Trade Idea
Considering the overall technical and fundamental analysis, it is better to stay cautious ahead of the US release. Let the market define its sentiment and then take the position accordingly.
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