The currency pair decreased today and is pressuring the broken resistance levels. It remains to see if this will be a valid breakout or not. The breakout needs confirmation, the rate increased in the last days as the USDX has managed to stay higher on the short term.

Unfortunately, the United States data have come in mixed in the yesterday’s trading session, we had some very poor numbers, but the dollar index has managed to increase today and to resume the short-term rebound.

The USD/CHF increased, but a false breakout will send the rate down very quickly in the upcoming period, right now you should stay away and wait for a fresh trading opportunity. The Swiss Franc received a strong support from the Switzerland CPI, which it has increased by 0.4% in March, beating the 0.2% estimate, the indicator remains steady at 0.4% for the second month.

The United States Unemployment Claims could bring some action in the afternoon, the indicator is expected to increase a little from 215K to 225K in the previous week, while the Trade Balance may drop further from -56.6B to -56.9B. The Challenger Job Cuts will be released as well, but i don’t think that will bring something important.

You can see that the rate has managed to jump above the median line (ml) of the descending pitchfork and above the sliding line (minor ascending dotted line) of the ascending pitchfork. Only a valid breakout above these obstacles will suggest a further increase in the upcoming period, while a false breakout will send the rate towards the lower median line (lml) of the ascending pitchfork. It should move higher if will stabilize above the broken levels, the next upside targets are at the median line (ML) and at the upper median line (uml) of the descending pitchfork. This scenario will take shape only if the USDX will have enough directional energy to move even higher in the upcoming weeks.