FX.co ★ USD/CHF: downside movement confirmed

The USD/CHF pair is trading in the red at 0.9165 at the time of writing and it seems determined to approach and reach new lows. The price action signaled exhausted buyers, so a short term corrective phase was natural. Still, a larger drop needs confirmation.

The USD lost significant ground versus its rivals as the Dollar index retreated a little. Fundamentally, the US Final GDP reported only a 2.1%, less compared to the 2.2% growth expected, Final GDP Price Index rose by 1.7% versus 2.05 growth estimated, while Pending Home Sales reported a 7.1% drop versus the 1.1% drop estimated, but it came in worse compared to the 0.5% growth in the previous reporting period. So, the US reported poor data, that's why the USD depreciates.

USD/CHF Sell-Off!

Technically, the USD/CHF pair found resistance at the 0.9222 historical level and now it has turned to the downside. It has taken out the uptrend line signaling a corrective phase.

Now, it challenges the weekly R2 (0.9170) after failing to come back to test and retest the broken uptrend line.

USD/CHF Outlook!

The former low of 0.9154 represents a key support. A bearish closure below this downside obstacle activates more declines. This is seen as a selling opportunity.