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USD/CHF analysis marks the pair in the red right now as the DXY has plunged. DXY’s further decline should force the pair to approach and reach fresh new lows. However, the Dollar Index failed to reach the former high or make a fresh new high, signaling strong pressure.

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The greenback depreciates even if the US PPI and the Core PPI have increased by 1.0%, beating expectations. So, it seems that the US inflation’s unexpected growth is negative for the USD in the end.

The BOC Monetary Policy Report, BOC Rate Statement, and the BOC Press Conference could impact the DXY later. In addition, the US Unemployment Claims, Industrial Production, and the Capacity Utilization Rate could bring more action tomorrow.

Also, don’t forget that the US is to release its retail sales data along with the Prelim UoM Consumer Sentiment.

USD/CHF technical analysis:

USD/CHF has found resistance at the 50% retracement level and now is located under the weekly pivot point (0.9179) and under the ascending pitchfork’s lower median line (LML). Stabilizing outside of the pitchfork’s body could announce a deeper decline.

Technically, its failure to stabilize above the ascending pitchfork’s upper median line (UML) and beyond the median line (ml) signaled that we may have a valid breakdown through the lower median line (LML).

Still, only a valid breakdown through the 38.2% retracement level could really validate a larger downside movement. So, in the short term, USD/CHF could move sideways between the 50% and 38.2% levels.

An upside breakout from this range could signal an upwards continuation, while a downside breakout may bring a larger downside movement.

USD/CHF analysis on 4-hour chart
USD/CHF analysis on 4-hour chart

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