USDCHF: Potential breakout pending

UP NEXT:

USD: With the slightly less Dovish statement from FOMC statement and the of inflation and employment targets needing to be met before hinting at interest rate hikes, we can be assured traders will be closely watching (and readjusting thier positions) on any data regarding GDP, Employment or Inflation. Today we have all three, so if we see particularly soft data then expect some over-zealous Greenback bulls to dump their Dollars. Conversely if we see string daa (particularly GDP and Core PCE) then exepct further upside on USD and weakness across the majors.

TECHNICAL ANALYSIS:

COPPER: ...Load of this

The intraday charts suggest another higher-high may be on the horizons. Allow for a deeper retracement towards 3.065 as the markets adjust following the Bearish Engulfing Candle following the FOMC statement. However I favour another high because the 3.15 high broke above the high made on Oct 15th.

Take note of the bearish trendline above 3.120 that is likely to act as resistance if the bullish target is hit.

For those wishing to take the bearish route we can await a break below the bullish trendline and seek sell-setups below 6.062 resistance zone to target 3.023. There is a good argument for this trade as AUDUSD is well within a range, so Copper may decide to follow suit over the coming sessions of the week.

USDCHF: Potential breakout pending

The break above the trendline marked the end of the correction and a new impulsive move is underway. It is now a question of whether we will see a direct break above 0.956, or a minor pullback before lift-off.

Due to US data dominating the session again this may favour a buy-stop order above resistance for a breakout trade, which (hopefully) doesn't trigger if US data comes out soft tonight.