The USD/CHF drops like a rock and erases the latest gains. Technically, has shown some exhaustion signs in the last two weeks, but the USD dragged the price higher as the USDX has managed to reach new highs. The dollar loses ground versus its rivals as the USDX failed to stabilize above the 93.81 horizontal resistance.
Price is located above the 0.9760 level and stays above a dynamic support (resistance turned into support), it could come much deeper to retest a major support before will try to climb much higher.
The Swiss Franc rallied also because the Switzerland Unemployment Rate dropped unexpectedly, it was reported at 3.1%, below the 3.2% estimate and below the 3.2% in the former reading period. The economic indicator reached the February 2015 low.
Price dropped sharply and erased the yesterday’s gains and could invalidate the breakout above the outside sliding line (SL) and above the 0.9787 static resistance. We’ll see what will happen in the upcoming days because a USDX increase will force the rate to increase again. I’ve said in the yesterday’s report that only a consolidation above the 0.9787 will confirm a further increase. USD/CHF could come along the upper median line (uml) of the descending pitchfork till will reach the WL2.
