The USD/CHF pair has been consolidating within a bullish trend, hinting at the dollar's strength against a backdrop of a surging Dollar Index (DXY). This consolidation phase is depicted by the formation of a descending wedge pattern, typically indicative of a potential upward breakout.
Today's focus is on the US GDP data release at 13:30 GMT. Despite the consensus for a 1.6% decline, there are whispers in the market about a potential surprise to the upside. The DXY's bounce off trendline support has propelled USD/CHF to test the upper bounds of the wedge. A decisive close above 0.8807 could confirm the continuation of the uptrend, with the 0.900 to 0.904 levels as subsequent targets.
The pair finds immediate resistance at 0.8807, with support at 0.8742 and 0.8684. In light of the dollar's ascent, the bias leans towards bullish, yet today's GDP results are pivotal. A GDP reading above 3.3% could bolster the pair's climb, while figures below forecast may lead to a pullback.
Today's focus is on the US GDP data release at 13:30 GMT. Despite the consensus for a 1.6% decline, there are whispers in the market about a potential surprise to the upside. The DXY's bounce off trendline support has propelled USD/CHF to test the upper bounds of the wedge. A decisive close above 0.8807 could confirm the continuation of the uptrend, with the 0.900 to 0.904 levels as subsequent targets.
The pair finds immediate resistance at 0.8807, with support at 0.8742 and 0.8684. In light of the dollar's ascent, the bias leans towards bullish, yet today's GDP results are pivotal. A GDP reading above 3.3% could bolster the pair's climb, while figures below forecast may lead to a pullback.