USD/CHF grinds sideways again; big move likely – target below 0.9016

FXstreet.com (Barcelona) - The USD/CHF moving sideways for going on 3rd straight session – trading behavior that typically leads to a big move in one direction or the other. In this case, technicians are thinking the move will be lower.

Dollar weakness may resume soon – potentially driving USD/CHF lower

USD/CHF Traders will be focused on US home price indices , Consumer Sentiment and multiple “Fed Head” speeches on Tuesday – no Swiss data is due out. Continued chatter out of Washington regarding the budget battle, the debt ceiling and Obamacare will provide negative background chatter.

Given the outlook by most technical analysts that the US Dollar Index (DXY) has more downside work to do (down to at least 79) after the current consolidation runs its course, the USD/CHF should share that same short-term bearish outlook.

Technical outlook for USD/CHF

Technicians say USD/CHF is most likely going to make its way down to the 0.8995 to 0.9016 range before any substantial support is found. The short-term resistance comes in at 0.9127 and is followed up by 0.9233.

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