The USD/CHF price found support after its massive drop and is now fighting hard to rebound. It’s traded at 0.9059 and is fighting hard to rebound. However, the pressure is high. So, the USD/CHF could drop deeper anytime.
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The pair is trading in red as the DXY has dropped again. It remains to see how it will react later after the US ISM Manufacturing PMI release. The economic indicator came down from 60.6 to 59.9.
Moreover, the Final Manufacturing PMI is expected to remain steady at 63.1 points. At the same time, the Construction Spending increased by 0.1% versus 0.2% drop in the previous reporting period, the ISM Manufacturing Prices will be released as well.
The Swiss Franc is still strong even if the Switzerland CPI dropped by 0.1% as expected and after the Retail Sales increased only by 0.1% versus 3.4% expected. Furthermore, the Manufacturing PMI increased unexpectedly from 66.7 to 71.1 points helping the CHF to stay higher.
USD/CHF price technical analysis: More bears to follow
The USD/CHF pair has found support right on the descending pitchfork’s lower median line (LML). It has increased a little to retest the 23.6% retracement level and the inside sliding line. The pair could resume its drop as long as the Dollar Index drops deeper. We have a strong positive correlation between these assets.
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Failing to close and stabilize above these obstacles signaled strong sellers and a potential further decline. USD could lose more ground if the US data disappoints during the week. Technically, increasing and stabilizing above the inside sliding line (descending dotted line) could signal a potential rebound.
The 0.9051 static support, former resistance, continues to hold. A new higher high, jumping and closing above 0.9075 Friday’s high signals a potential growth at least until the median line (ml).
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