The USD/CHF pair edged higher, reaching 0.9126 new high today. Now, it has turned to the downside as the Dollar Index retreated. Technically, the price action developed a bearish formation. Still, the pattern needs confirmation before taking action.
Fundamentally, the US HPI and S&P/CS Composite-20 HPI came in better than expected earlier. Still, only the CB Consumer Confidence and New Home Sales figures could bring high action. Positive US figures could boost the USD while poor data could announce USD's depreciation.
USD/CHF Bearish Formation!
Technically, the currency pair reached the 0.9147 historical level, registering only a false breakout with great separation. Now, it has dropped below the uptrend line but it has found support on the weekly R1 of 0.9120.
As you can see, the rate escaped from the potential Rising Wedge pattern. The rate could try to test and retest the broken uptrend line.
USD/CHF Outlook!
Dropping and closing below the R1 of 0.9120 activates more declines. This is seen as a short opportunity.
