The U.S. is printing a bunch of consumer-related reports this week.
Will the releases bust USD/CHF out of its triangle consolidation?
Take a look what I’ve found on the daily chart:
USD/CHF: Daily
In case you were too busy looking at other major dollar pairs, you should know that USD/CHF has been trading inside a symmetrical triangle pattern as far back as the first half of 2021.
I’m looking at USD/CHF this week because the pair is about to reach the end of the consolidation pattern. Does this mean that we’ll soon see a breakout?
The U.S. is publishing its December consumer price data tomorrow, followed by a report on producer prices and then December retail sales numbers later in the week.
If the reports point to relatively strong economic activity, then the Fed members would be more motivated to speed up their tapering/tightening schedule.
This could push the dollar higher against its fellow safe-haven franc and break USD/CHF above its consolidation.
I’ll be on the lookout for a clear break above the .9300 psychological handle, which could push USD/CHF to the .9450 previous resistance or even the .9750 area of interest.
Of course, it’s possible that USD/CHF doesn’t react much to this week’s releases.
The pair could find bounce from the .9300 triangle resistance and stay inside the pattern until a bigger catalyst inspires a breakout.
What do you think? Which way will USD/CHF go this week?
