The USD/CHF pair was trading at 0.9575 at the time of writing. In the short term, it has rebounded but this was only a minor one as the Dollar Index resumed its sell-off. As you already know, the DXY is bearish, further drop forces the greenback to lose more ground versus its rivals.
Fundamentally, the KOF Economic Barometer came in at 96.8 points today versus 102.6 points expected. Tomorrow, Switzerland's GDP may register a 0.3% growth, the Retail Sales indicator could report a 1.4% drop, while the Trade Balance is expected at 3.50B. The bias remains bearish, but it remains to see what will really happen as the US is to release high-impact data during the week.
USD/CHF Corrective Phase!
The bias remains bearish as long as it stays below the downtrend line. In the short term, it has developed a minor flag pattern. This formation could bring a downside continuation. As you can see on the H1 chart, the price failed to stabilize below 0.9573 former low signalings that the sellers could be exhausted.
Personally, I would like the price to reach and retest the downtrend line before trying to make a valid breakdown through the flag's support.
USD/CHF Forecast!
Staying below the downtrend line and making a valid breakdown below the minor uptrend line could activate a potential drop towards the 61.8% (0.9526) retracement level. False breakouts above the downtrend line followed by a valid breakdown from the current formation could bring a new selling signal.
