The USD/CHF has increased significantly today and has managed to recover after the yesterday’s massive drop, has come back right above the 1.0000 psychological level, has increased as much as 1.0014 and could hit the 1.0018 static resistance in the coming hours. Has increased as the US dollar index has managed to jump much higher in the last hour, is approaching the 101.00 psychological level, a further increase will force the USD to increase as well. I’ve said in my last articles that the USDX could move sideways on the short term.
The greenback has resumed the today’s bullish momentum also because the United States CB Leading Index has increased by 0.6% in January, exceeding the 0.5% estimate, has increased also more versus the 0.5% growth since December 2016. The CB Leading Index has reached the May 2016 growth and has boosted the greenback.
The greenback has started to increase again, the United States economic data have come in better in the last days, but remains to see if will have enough energy to resume this bullish momentum because continues to be under pressure on the short term.
The price has increased and now is located again above the lower median line (LML) of the major ascending pitchfork, but I’m not very confident that will stabilize above this level. The rate was somehow expected to decrease further after the failure to stabilize above the median line (ml) of the minor descending pitchfork. A failure to stay above the lower median line (lml) of the major ascending pitchfork will attract more sellers again, which will drive the price towards the 0.9860 previous low.
We’ll have a larger rebound only if the rate will jump and will stabilize above the median line (ml) of the minor descending pitchfork, we’ll have a great buying opportunity if the rate will come back down to test and retest the confluence area formed at the intersection between the lower median line (LML) of the ascending pitchfork with the median line (ml) of the descending pitchfork.