USD/CHF changed little today and seems undecided as the USDX moves little as well. Price remains under selling pressure on the short term, even if we had a minor rebound. The rate has found temporary support, but it could drop deeper in the upcoming days if the dollar index will slip lower. The price is moved by the technical factors today because we have a poor economic calendar. The United States will release only the Richmond Manufacturing Index, which is expected to decrease from 20 to 19 points, but I don’t believe that will have a significant impact. The greenback needs strong support from the United States data to be able to increase again.

The dollar index has found temporary support on the lower median line (LML) of the descending pitchfork but is premature to talk about a rebound. I’ve said yesterday that the dollar index could increase on the short term if it will stay above the lower median line (lml) of the minor ascending pitchfork. The index has come back down to test the confluence area formed between the LML with the lower median line (lml) of the ascending pitchfork but failed to touch this area as the buyers have stepped in again. We may have a minor accumulation here, which could signal a bullish momentum.

You can see that the USD/CHF has found support above the upper median line (uml) of the blue descending pitchfork and now is pressuring the 0.9634 static resistance. The failure to reach the second warning line (WL2) of the former ascending pitchfork could send the rate higher, but only if the dollar index will start a bearish momentum.

The downside movement was expected and was natural after the impressive rally and after the failure to touch the second warning line (wl2) of the descending pitchfork. We’ll see what will happen because I really believe that the price will try to reach the second warning line (WL2) of the ascending pitchfork.