The USD/CHF pair dropped as much as 0.9335 where it had found support. It has registered a 1.32% drop from 0.9460 yesterday's high to today's low. The pair plunged as the US dollar index declined. The pair managed to recover as the DXY reached a support zone.
Fundamentally, CHF rose following an upbeat report on Switzerland's Trade Balance. The reading came in at 5.95B above 4.20B. On the other hand, the US Unemployment Claims, Housing Starts, and the Philly Fed Manufacturing Index turned out to be better than expected, while Industrial Production surged by 0.5% matching expectations.
USD/CHF Bullish Momentum!USD/CHF plunged after failing to stabilize above the weekly R1 (0.9410). Yesterday's pin bar, the bearish engulfing signaled that the buyers are exhausted and that the rate could come back down to test and retest the buyers.
A former high of 0.9337 acts as static support. It has registered only a false breakdown through this level. Now, it is trying to rebound.
USD/CHF Outlook!The retreat may be a temporary one. It could be over if the USD/CHF stays above 0.9337. In the short term, the price may break through this downside obstacle.
False breakdowns below the 0.9337 or a major and strong bullish pattern right above this level could bring new buying opportunities. A temporary consolidation above the support level could lead to a new leg higher.