USD/CHF is accelerating its sell-off and most likely it will reach fresh new lows soon. The Swiss Franc has taken the lead again and it seems determined to appreciate further versus the dollar.
The pair drops, even if the USDX has managed to increase today, I believe that only a USDX reversal could force USD/CHF to develop another leg higher. CHF is rallying today as Switzerland's Unemployment Rate was reported at 3.4%, below the 3.6% estimates.
USD/CHF drops after it has failed to stay within the extended sideways movement, above the 0.9591 level. It is trading at 0.9555 and most likely will pressure the 50% retracement level again soon.
The pair has found strong resistance right above the 38.2% retracement level, the breakdown from the major range could open the door for a larger drop. A valid breakdown below the 50% level could announce a further downside movement.
The outside sliding line (SL1) of the major descending pitchfork has acted as strong dynamic support, but it could be taken out if the price stays near it.
- USD/CHF Trading Tips
Another lower low, a drop, and close below 0.9540 could bring a short opportunity, the next downside targets are seen at the S2 (0.9495), the 61.8%, and at the S3 (0.9450) levels. Technically, USD/CHF could approach and reach also the upper median line (UML) of the former descending pitchfork after the downside breakout from the extended range.
A USDX's rally and a false breakdown with a huge separation below the 50% retracement level could bring a long opportunity in the short term. Still, an important upside movement will be confirmed only if the price makes another higher high, to jump and close above the 0.9649 level.
