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Our USD/CHF forecast noted the pair register a strong sell-off in yesterday’s session as the US Dollar Index has slipped lower. The price reached strong support levels and is now struggling to recover a little. It remains to be seen what will really happen as the greenback is vulnerable to further slides.

The USD has managed to appreciate a little even if the US Unemployment Claims data disappointed yesterday. Actually, the dollar’s rebound was somehow expected after its sell-off versus the other major currencies.

The US will publish the Final Wholesale Inventories later. The indicator is expected to increase by 1.1%, but I don’t think that it will change the sentiment. For those interested in forex day trading this or future events, check out our guide.

DXY Technical Analysis

dxy chart  

USD/CHF could resume its decline as the DXY seems very heavy. The Dollar Index has printed a Rising Wedge pattern after indicating bearing divergence. Breaking out from this pattern could signal a deeper drop.

DXY’s further decline forces the greenback to depreciate further versus its rivals. A false breakdown with great separation or any other bullish pattern printed here could drive the index higher.

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USDCHF Forecast – H4 Technical Analysis: pressuring lower median line

usdchf forecast

USDCHF forecast notes that the pair has found temporary support on the ascending pitchfork’s lower median line (lml). It has tried to rebound, but it has failed to close near 0.9175 today’s high. Now it is trading lower at 0.9146 level and continues to pressure the lower median line.

A valid breakdown and a new lower low – a drop below 0.9133 yesterday’s low – could really signal a larger drop towards 0.91 psychological level. Technically, staying within the ascending pitchfork’s body could bring a new bullish momentum.

Actually, an upside movement could be signalled by a new higher high, if USD/CHF jumps and closes above 0.9175.  

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