The USD/CHF pair increased as much as 0.9294 in yesterday's session where it has found resistance. Now, it's trading in the red at 0.9240, it could slip lower if the Dollar Index drops deeper. On the other hand, DXY's growth could push the pair higher as we have a positive correlation between USD/CHF and the dollar index.
You have to be careful today as the fundamentals will drive the price. The SNB is expected to keep its monetary policy in today's meeting. This is seen as a high-impact event, so the volatility will be high. USD/CHF could start increasing again if the US will report better than expected data later today.
The US Unemployment Claims is expected at 196K in the previous week, the Industrial Production may report a 0.6% growth, while the Capacity Utilization Rate could jump from 76.4% to 76.9%. In addition, the Flash Manufacturing PMI could rise from 58.3 to 58.6 signaling further expansion, while the Flash Services PMI is expected at 58.9 above 58.0 in the previous reporting period which could be good for the USD.
USD/CHF Extended Range!USD/CHF registered a false breakout with great separation above the 0.9272 static resistance failing to approach and reach the ascending pitchfork's median line (ml). It's trapped between 0.9272 and 0.9157 levels. Only a valid breakout from this range could bring us a clear direction. It false breakout could announce a potential drop at least until the ascending pitchfork's lower median line (lml) which stands as a dynamic support.
A valid breakdown below the lower median line (lml) could announce a potential drop towards the 0.9157 static support.
USD/CHF Prediction!It remains to see what will really happen if the rate reaches the ascending pitchfork's lower median line (lml) and the 0.9212 weekly pivot point. An upwards movement could be confirmed only by a valid breakout above 0.9272. As long as it stays above the lower median line (lml), USD/CHF could still grow. A bullish pattern around the lower median line (lml) could bring new long opportunities.