Why USD/CHF is expected to drop further?
USD/CHF drops like a rock as the US dollar index goes down towards fresh new lows. USDX's further drop weakens the greenback which depreciates versus all its rivals and not only versus the Swiss Franc.
The US Final Manufacturing PMI and the Construction Spending will be released later today but I don't think that will change the sentiment. The bearish bias is intact after its failure to make new highs in the short term.
USD/CHF Trading In The Red!
Technically, the price is somehow expected to drop further after failing to close above the 0.8919 former high, static resistance. Now, it has dropped under the lower median line (LML) after retesting the Pivot Point (0.8855) level signaling more declines ahead.
A new lower low, bearish closure under 0.8794 lower low could suggest selling as USD/CHF could resume its sell-off. I've told you in my previous analysis that the price should drop deeper if it registers a valid breakdown under the lower median line (LML).
USD/CHF Forecast
Sell a bearish closure under the S1 (0.8793) level and use the S2 (0.8730) as the first downside target.
