USD/CHF dropped a little after reaching a resistance zone, but the outlook is still bullish. The pair slipped lower only because the Dollar Index has retreated after reaching a static resistance. Technically, the DXY has found support and now it tries to grow.
We have a strong positive correlation between the Dollar Index and USD/CHF. DXY’s potential rally after the US inflation data should help the pair to increase. The CPI is expected to rise by 0.4% while the Core CPI may register a 0.3% growth.
USD/CHF Technical Analysis!
USD/CHF retested the 0.9206 former high (resistance has turned into support) and now it could come back to challenge the ascending pitchfork’s upper median line (UML) and the weekly R1 (0.9229).
Making a valid breakout through the 0.9242 could really announce an upside continuation. The upside scenario could be invalidated by a major bearish pattern here around the immediate resistance levels.
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