USD/CHF drops right now as the Dollar Index is bearish in the short term. The index has shown some overbought signs. DXY’s drop forces the greenback to decline as well. We have a strong positive correlation between the Dollar Index and USD/CHF.
The Switzerland PPI increased by 0.5% versus 0.3% expected. It remains to see how the pair may react around the US Prelim UoM Consumer Sentiment release.
USD/CHF Technical Analysis!
USD/CHF failed to make a new higher high signaling strong resistance area. Now it has dropped below 0.9227 and 0.9225 immediate lows signaling high selling pressure. It has also dropped below the immediate uptrend line.
The pair could resume its drop as long as it stays below the broken support levels. The next major downside target is seen around the former lower lows.
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