The USDCHF currency pair has formed a resistance cluster just below the important pivot point cluster. The descending trend line with the zig zag pattern indicates that the trend is still bearish. Today we have a CB Consumer Confidence release, which might provide another cue where the price will be heading next.
CB Consumer confidence (The Conference Board) measures the level of a composite index based on surveyed households. It is a leading indicator of consumer spending, which accounts for a majority of overall economic activity. Don’t forget to check our Forex calendar for all the updates on the news, economic announcements, forecasts, and more!
Technically, the USD/CHF has formed an important resistance as we stated above. The POC zone lies just above, within 0.9660-70. However we can also spot a bullish SHS pattern that might still spike the price to the upside. That is why the zone is important. Rejections should target 0.9606, while the spike above aims for 0.9760. At this point we might see some rejections, but it looks like the US rate hike that is expected tomorrow is fully priced into the markets.
Be aware of the POC zone and bear in mind that this USD rally might spike above the POC zone tomorrow, as the move doesn’t look speculative. Traders might also want to focus on confluence of the Admiral pivot points. Confluence is spotted when both weekly and daily pivots are close to each other.
Pivot Lines – Weekly Support and Resistance
POC – POC – Point Of Confluence (The zone where we expect the price to react – aka the entry zone)