The rate plunged after the United States data were sent to the public and has erased the earlier gains. USD/CHF is trading in the red and is pressuring a dynamic support after the false breakout above a dynamic resistance. Remains to see what will happen till the end of the day because the rate may squeeze a little after the impressive drop.
Unfortunately, the greenback has taken a hit from the United States data, which has disappointed in the afternoon, failing to come in line with expectations.
The US Retail Sales have increased only by 1.6% in September versus a 0.1% drop in August, less versus the 1.7% estimate, while the Core Retail Sales surged by 1.0%, more versus the 0.9% estimate and versus the 0.5% growth in the former reading period. Moreover, the CPI increased only by 0.5%, less compared to the 0.6% estimate, the Core CPI disappointed as well because has increased only by 0.1%, less versus the 0.2% estimate.
You can see that the rate failed to stay above the UML and now is pressuring the WL2 of the former ascending pitchfork. I’ve said in the previous reports that the rate could come down to retest the second warning line (WL2) after the false breakout above the median line (ml) of the ascending pitchfork and above the 0.9787 static resistance.
Only a valid breakdown below the WL2 will confirm a further drop in the upcoming period, while a rejection will signal a potential bullish momentum.
