USD/CHF plunged as the Dollar Index crashed in the second part of the day. Still, the currency pair reached a support zone. False breakdowns or a bullish pattern could announce a new upside movement.
Today, the Swiss franc received a helping hand from the Switzerland Retail Sales. The economic indicator rose by 5.1% versus only 0.4% expected and after a 0.5% drop registered in the previous reporting period. The CHF rallied despite the fact that the KOF Economic Barometer was reported at 105.0 below 108.1 estimates. Furthermore, the GDP rose by 0.3% matching expectations.
USD/CHF new leg higher?
USD/CHF developed a major triangle in the short term. The sell-off could be only a temporary one after reaching the uptrend line and the 0.9177 downside obstacles. False breakdowns or a strong bullish pattern here could signal new bullish momentum.
Technically, after its massive drop, a bounce-back is somehow expected. Only a valid breakdown below the uptrend line could announce a potential drop at least towards 0.9150 lower low.
USD/CHF prediction
Being in a support zone, a new leg higher is favored. Still, only a false breakdown with great separation, a bullish engulfing, or any other bullish pattern could bring great long opportunities.
Only a new lower low, a valid breakdown below 0.9150 could really announce a strong downside movement and could bring short opportunities.
