USD/CHF dropped little today and seems like is losing momentum as is almost to hit a very strong dynamic support level. Price is into a corrective movement, but remains to see how long this will be because the buyers could strike back if the USDX will find support.

However, is premature to talk about the USDX’s rebound as the rate accelerates the sell-off. USDX s trading near the 92.90 level, has ignored the 93.00 psychological level. The greenback will drop further versus its rivals if will the USDX will reach new lows in the upcoming days.

You can see that the USDX extends the massive drop and could touch the sliding parallel line (SL) of the former major ascending pitchfork, where he may find support again. I’ve said in yesterday’s reports that the index should reach and retest the 92.49 static downside obstacle and only a valid breakdown below this level will signal a major drop in the upcoming period. We have a violent drop on the short term, but this could be only temporary if the mentioned support levels will hold because a breakdown will ruin the greenback.

Remains to see how will react after the US data will be released, the Flash Manufacturing PMI could increase to 55.1 while the Flash Services PMI to 55.5 signaling a further expansion.

The price decreased and tries to approach the 0.9793 yesterday’s low, could reach it if the dollar index will drop further in the upcoming hours. The rate is pressuring the38.2% retracement level, a valid breakdown will bring a breakdown below the second warning line (WL2) as well. Is not a good place to sell, but a valid breakdown below the WL2 and a retest of the first warning line (wl1) of the descending pitchfork will confirm a larger drop in the upcoming period. However, a buying opportunity will appear only after a rebound from the WL2 and a valid breakout above the first warning line (wl1).