USD/CHF Larger Retreat?

USD/CHF is trading in the red on the H4 chart and it could drop deeper if the US data will disappoint later today. The pair drops as the DXY has resumed its temporary decline. The US Dollar Index moves down within a down channel.

The US is to release its Flash Manufacturing PMI and the Flash Services PMI later. Better than expected data could bring us a new upside momentum on USD/CHF. You should be careful around these publications as the volatility will be high.

Some poor US data could really force the pair to go down towards new lows. Personally, I really hope that we’ll have a good opportunity later today.

USD/CHF H4 Chart Technical Analysis!

USD/CHF failed to stabilize above the 50% retracement level signaling some selling pressure. The descending pitchfork’s median line (ml) is seen as a dynamic support. Dropping and stabilizing below it could signal a deeper drop.

I’ve drawn a Fibonacci retracement on the last swing higher. A valid breakdown below 23.6% could activate a further decline. The downside scenario could be invalidated by a bullish fly above the 50% retracement level.

Conclusion!

USD/CHF current retreat is natural after the last upwards movement. Dropping and closing under 0.9165 could signal a broader decline.

 

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