EUR/CHF dropped in the last two days and seems determined to escape from a Rising Wedge pattern. Price is pressuring a very strong dynamic support, we’ll see what will really happen in the upcoming hours. Technically, it is somehow expected to drop further after the failure to make new highs, but we still have to wait for a confirmation that it will drop further before we take a short position.

We’ll see what will happen tonight as the Euro could drop versus all its rivals if the USD will rally post FOMC. The European currency also dropped versus the Yen and versus the Pound,  not only against the Swiss Franc.

The Euro-zone data have come in mixed today, but the Euro wasn’t impressed at all. The Industrial Production rose by 0.2% in October, beating the 0.0% estimate, the Employment Change surged by 0.4%, matching expectations. Euro also received support from the German WPI, which increased by 0.5%, more versus the 0.2% estimate and from the German Final CPI, the indicator has come in line with expectations, matching the 0.3% estimate but wasn’t enough to save it from the downside.

You can see that the price has dropped and looks very heavy again. It has changed little today, but I hope that we’ll have a high activity tonight.  A valid breakdown below the lower median line (lml) will confirm a larger drop. The upper median line (uml) represents a very strong dynamic support, you can notice that has rejected the price several times in the last months. Technically, it could drop after the failure to reach and retest the warning line (wl1) of the ascending pitchfork. The next downside target will be at the median line (ml) of the ascending pitchfork. Price should drop more than 250 pips if the rising Wedge will be confirmed, so it could be attracted by the lower median line (lml) of the ascending pitchfork.