The rate rallied aggressively in the last days and has managed to reach some very important upside targets. It remains to see what will happen after the Friday’s drop and after the USDX exhaustion sign. Price remains bullish despite the yesterday’s minor drop and despite a minor corrective phase.

USD/CHF will jump much higher if the USDX will resume the upside movement. The USDX dropped aggressively in the last hours of the US session despite some very good US economic data. The index has reached a strong dynamic resistance, which has rejected the rate.

Technically, the USDX could come down to test some support levels (resistance has turned into support) after the rejection from the 92.00 psychological level.

The US Advance GDP rose by 2.3% in the first quarter, beating the 2.0% estimate, but less versus  the 2.9% in the previous reading period, while the Advance GDP Price Index increased only by 2.0%, less compared to the 2.2% estimate and versus the 2.3% growth in the former reading period.

The Employment Cost Index increased by 0.8%, more versus the 0.7% estimate and compared to the 0.6% growth in the former reading period. The Revised UoM Consumer Sentiment increased as well, from 97.8 to 98.8 points, beating the 98.0 estimate.

The rate rallied and has found temporary resistance at the median line (ml) of the minor ascending pitchfork as expected. I’ve told you in the previous analysis that the rate is expected to reach the median line(ml) of the minor ascending pitchfork and the upper median line (uml) of the descending pitchfork if the USDX will continue to increase.

I’ve also said that we have a major upside target at the median line (ML) of the major ascending pitchfork. Price failed to reach this level till now, we’ll see what will happen in the upcoming days, because a failure to reach the median line (ML) and to make a valid breakout above the upper median line (uml) will signal a potential corrective phase.