The USD/CHF pair registered an amazon growth today as the Dollar Index has risen. Now, it's trading at 0.9372 below today's high of 0.9398. After its strong rally, a retreat is natural. Yesterday, the US and Switzerland banks were closed in observance of New Year's Day.
Today, fundamentally, the Switzerland Manufacturing PMI came in at 54.1 points versus the 53.1 points expected signaling further expansion. Later, the US data could be decisive in the short term. Construction Spending could register a 0.4% drop, while Final Manufacturing PMI could remain steady at 46.2 points.
Tomorrow, the Switzerland Consumer Price Index and the US FOMC Meeting Minutes, JOLTS Job Openings, and the ISM Manufacturing PMI are seen as high-impact events and could bring sharp movements.
USD/CHF Amazing Rally!
Technically, USD/CHF rallied after failing to stay below the 0.92 psychological level. Now, it has ignored the median line of the ascending pitchfork and the 0.9347 resistance levels.
The rate failed to hit the 0.94 psychological level signaling exhausted buyers after the amazing bullish movement. In the short term, we cannot exclude a temporary drop, the rate could come back to test and retest 0.9347 before jumping higher.
USD/CHF Forecast!
Testing and retesting the 0.9347, consolidating above this level, and registering only false breakdowns may announce a new bullish momentum. This could represent a first long opportunity.
A selling opportunity could be announced if the rate reaches 0.9426 and the upper median line. False breakouts could announce a new sell-off. Only a valid breakout above these obstacles could announce an upside continuation.
