The US Dollar (USD) extended downside movement against the Swiss Franc (CHF) on Wednesday, dragging the price of USDCHF to less than 1.0160 following the release of worse than expected economic news from the United States on Tuesday. The technical bias however remains bullish because of a Higher High and Higher Low on the daily chart.
Technical Analysis
As of this writing, the pair is being traded around 1.0159. A hurdle may be noted near 1.0225, the swing high of the recent upside rally on the daily chart ahead of 1.0300, the psychological number and then 1.1000, another major milestone.
On the downside, the pair is expected to find a support around 1.0048, the 23.6% fib level ahead of 1.0000, the psychological number and then 0.9850, the 50% fib level as demonstrated in the above chat. The technical bias will remain bullish as long as the 0.9988 support area is intact.
US Consumer Confidence
The Conference Board’s Consumer Confidence Index fell to 90.4 in November, missing estimates for 99.5. It was also lower than October’s reading of 99.1. The share of Americans surveyed by the Conference Board anticipating more jobs in the coming months fell. Fewer people also expect to see their incomes increase. The percentage describing jobs as “plentiful” declined to 19.9 percent from 22.7 percent. The decline in the confidence index comes after a robust month of hiring in October. Employers added 271,000 jobs last month as the unemployment rate settled at a healthy 5 percent. The monthly consumer confidence survey is conducted by Nielsen for The Conference Board.
Trade Idea
Considering the overall technical and fundamental outlook, selling the pair around current levels appears to be a good strategy in short to medium term.
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