USD/CHF Door Open For A Deeper Drop!

USD/CHF changed little in the early morning as the USDX tries to rebound. The bias remains bearish as the rate is located under broken support levels. It drops within a down channel, its failure to retest the downtrend line signals very strong sellers.

USDX's further decline should force the greenback to depreciate versus its rivals. The US dollar index has dropped in the seller's territory after a temporary rebound.

The US is to release the Durable Goods Orders and the Core Durable Goods Orders later today. Poor figures could send USD/CHF towards new lows.

USD/CHF Near Support!

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USD/CHF failed to stabilize above the weekly pivot (0.9159) and now is located below the descending pitchfork's lower median line (LML). The outlook remains bearish as long as the rate stands within the down channel's body.

It has dropped below 0.9128 former low, stabilizing below it could indicate a deeper drop in the short term. USD/CHF could drop further towards 0.9 psychological level if USDX extends its sell-off.

Forecast!

USD/CHF should drop further if it validates the breakdown through 0.9128 static support. The pressure is high as long as it stays under the descending pitchfork's lower median line (LML).

The next immediate support is seen at the 61.8% retracement level, around the weekly S1 (0.9103).

A new buying opportunity will appear only if the rate makes an upside breakout from the down channel.

The material has been provided by InstaForex Company - www.instaforex.com

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