USD/CHF is hitting a key resistance zone!
The pair looks ready to bounce from the .9060 level, which isn’t surprising since the pair has found resistance from the area at least twice in the last week.
It also doesn’t help USD bulls that .9060 marks the R1 of today’s Standard Pivot Points.
The cherry on top of the sweet setup is a bearish divergence on the 1-hour time frame.
USD/CHF 1-hour Forex Chart by TV
We know that the dollar has been making pips rain all week thanks to U.S. debt ceiling concerns, hawkish FOMC prospects, and higher U.S. Treasury yields.
But that was earlier this week.
Word around is that Republican lawmakers are leaving their desks today to start their Memorial Day weekend. Diminished expectations of a debt ceiling deal over the weekend could prompt a bit of profit-taking among USD buyers or CHF sellers.
Meanwhile, traders could also stay in the sidelines ahead of closely watched U.S. data releases like the preliminary U.S. GDP report and the Core PCE price index report.
Profit-taking in the next trading sessions could set USD/CHF up for a trip back to the .9035 mid-channel area.
And if today’s GDP release and tomorrow’s U.S. core PCE price index report encourages dollar-selling, then we could see USD/CHF drop to lower inflection points like .9020 or .9000.
What do you think? How low can USD/CHF go before the buyers step in again?
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