USD/CHF  is trading in the red right now and is losing altitude as the USDX goes down on the short term. Price is moving somehow sideways on the short term, so we’ll have a clear direction only after a valid breakout from this minor range. Technically, it could drop on the short term after another false breakout above a very strong dynamic resistance.

The dollar index continues to drop even if the rate has escaped from a descending channel, could come down only to retest the broken levels, but I’m afraid that the FOMC Press Conference will send it towards fresh new lows.

I’ve added the USDX’s daily chart to show you better what’s happening with the USD on the short term. You can see that has failed to close above the 92.49 static resistance and now is going down to retest the outside sliding line (SL). The behavior will change only if the rate will start to make higher lows. Only a rejection from the sliding line (SL) will signal another move towards the lower median line (LML) of the descending pitchfork.

It was somehow expected to increase further after the breakout above the descending sliding parallel line (sl).

We’ll see how will react after the FOMC Press Conference because right now is premature to talk about a reversal.

Price has retested the confluence area formed at the intersection between the median line (ML) of the descending pitchfork with the median line (ml) of the minor ascending pitchfork.  A drop towards the lower median line (lml) is favored right now.

You can see that has made several false breakouts above the median line (ML), that’s why a minor correction is expected before the rate will recapture enough directional energy to start a broader increase.

Remains to see if this will be an accumulation or a distribution, technically it could be an accumulation because the rate has failed to close below the 0.9440 major static support. Only a valid breakout above the median line (ML) will confirm another upward swing.