USD/CHF Sideways Pattern Intact – Get ready for a Breakout!
The USD/CHF pair is trading sideways within a narrow trading range of 0.8912 to 0.8876. The dollar index seems to be trading with a mixed bias, on the back of the CPI figures due to be released during the US session. The Trump administration raised the uncertainty regarding the fragile stimulus negotiations, after proposing an economic relief package that would offer far fewer unemployment benefits than what was proposed by a bipartisan group of lawmakers.
Under the bipartisan framework released by a group of moderate lawmakers last week, Congress would deliver a new federal unemployment benefits package for tens of millions of jobless Americans, to the tune of $ 180 billion. This support would be enough to fund federal supplementary unemployment benefits in the amount of $ 300 per week and extend various unemployment programs that are set to expire at the end of the year.
In contrast, Steven Mnuchin has submitted a plan to provide about $ 40 billion in new funding for unemployment benefits. This plan would extend the expiring benefits, but it would not include any supplementary federal benefits. That would mean that millions of jobless people would not receive any additional federal help. The US session might bring a breakout upon the release of the Inflation figures.
In any case, we are holding our sell position in the USD/CHF pair, which could trade in our favor upon the bearish breakout at the 0.8876 support level. On the lower side, the support remains around the 0.8838 level today. Stay tuned!
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