USD/CHF is traded at 0.9254 level signaling that we may have a corrective phase in the end. The poor US data published earlier could drive the pair lower in the short term. The price failed to stabilize above 0.9300 psychological level and now it could develop a temporary corrective phase.
The dollar has taken a hit from the Retail Sales which dropped by 2.7% even if the specialists have expected to see a 0.2% growth, moreover, the Core Retail Sales indicator decreased by 3.0% versus 0.5% expected.
Industrial Production plunged by 2.2% in February, the traders have expected to see a 0.4% increase, while the Capacity Utilization Rate fell from 75.6 to 73.8%. USD/CHF should drop if the Dollar Index slips lower due to poor figures.
USD/CHF Correction!
USD/CHF is challenging the 23.6% retracement level again after failing to stabilize above the Pivot Point (0.9299) and beyond the third warning line (WL3). It could develop a sell-off if it drops and stabilizes under the S1 (0.9223) level.
The selling pressure could be high as long as it trades under the pivot point and WL3. A corrective phase could target 50% (0.9123) or even the 61.8% (0.9063) levels.
Trading Tips!
Sell a bearish closure under the S1 (0.9223) level and use the 50% and 61.8% retracement levels as downside targets.
Buying will be signaled by a new higher high, bullish closure above 0.9325.
