The USD/CHF increased in the early morning and tries to take out an important resistance level. Price surged as the USDX has managed to increase a little as well. The dollar index maintains a bullish perspective on the short term despite the minor drop.
USDX was expected to drop after the false breakout above the 93.81 static resistance, but failed to approach and reach the 92.49 static support, signaling that the bulls could take the lead again very soon.
The dollar index failed to retest a dynamic support as well, showing a minor oversold on the Daily chart. The greenback decreased a little on Friday as the US data have disappointed, but a USDX’s increase will force the USD to pick up again. Technically, the USDX is expected to increase and to jump above the 93.81 major static resistance.
Price increased as is very close to erase the Friday’s losses. Right now is pressuring the upper median line (uml) of the descending pitchfork and could hit the outside sliding line again. Technically, it could breakout above the sliding line (SL) after the false breakdown below the WL2 and after the failure to close on this major dynamic support.
Resistance can be found at the 0.9787 level as well, so only a valid breakout above this level will confirm a further increase in the upcoming period. On the other hand, a drop will be validated after the valid breakdown below the WL2 of the ascending pitchfork.
