USD/CHF has rebounded a little but the bearish bias remains intact. The price increased only because the US Dollar Index has bounced back after its aggressive sell-off.
Today, the US is to release the Unemployment Claims, the CB Leading Index, and the Existing Home Sales. Good economic figures could help the greenback to increase in the short term.
On the other hand, poor data could bring a new sell-off on USD/CHF. The Swiss Franc increases at the time of writing as the Switzerland Trade Balance widened from 3.67B to 5.82B, beating 4.12B expected.
Moreover, the US Flash Manufacturing PMI and the Flash Services PMI will be released tomorrow, which could be decisive.
USD/CHF Under Massive Pressure!
USD/CHF rebounded from below the lower median line (LML), but the perspective remains bearish as long as the rate stands below the downtrend line. It's trading below the S1 (0.9162), dropped below the S2 (0.9126), and registering a new lower low may bring a new short opportunity.
USDX's deeper decline could drag USD/CHF lower towards fresh new lows in the short term. Stabilizing below the descending pitchfork's lower median line (LML) could indicate a broader decline.
Forecast!
Sell if USD/CHF drops and closes below the S2 (0.9126) with a downside target at the S3 (0.9037).
