The USD/CHF moves sideways in the short term. It’s traded in the red at 0.9267 level at the time of writing. It has dropped significantly as the Dollar Index erased the latest gains. The pair has increased a little right after the US inflation data was released.
As you already know, the US CPI registered a 0.4% growth in September versus 0.3% expected, while the Core CPI increased by 0.2% as expected. Don’t forget that the FOMC Meeting Minutes could change the sentiment later tonight.
USD/CHF Technical Analysis!
The USD/CHF plunged after registering a false breakout through the weekly R1 (0.9311) level. It has also registered only a false upside breakout from the range pattern. Technically, it was somehow expected to grow after escaping from the descending pitchfork’s body.
In the short term, it could come back down to test and retest the support levels before jumping higher. 0.9252 and the descending pitchfork’s upper median line are seen as strong downside obstacles. Staying above these levels could still signal that the USD/CHF pair could climb higher.
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