The currency pair dropped aggressively in the last hours and erased the earlier gains even if the US data have come in better than expected. The USDX plunged in the last three hours and now is pressuring the 93.00 psychological level. Technically, the dollar index remains under massive selling pressure because is still located below two very strong resistance levels (support turned into resistance).

USDX could retest a very important support in the upcoming hours, we’ll see how will react then. USD/CHF could come down to test and retest important dynamic support levels, the retest could bring us a great buying opportunity.

The Switzerland GDP increased by 0.6% in the Q3, matching the expectations, while the KOF Economic Barometer increased from 109.8 to 110.3 points, beating the 109.5 estimate. The Swiss Franc dropped significantly in the European trading session as the Retail Sales dropped by 3.0%, even if the economists have predicted a 0.3% growth.

The USD dropped even if the Unemployment Claims were reported at 238K in the former week, much below the 241K estimate and versus the 240K in the former reading period. The USD plunges even if the Chicago PMI was reported at 63.9, higher versus the 62.2 estimate, the Personal Spending increased by 0.3%, more than the 0.2% estimate, while the Personal Income surged by 0.4%, more than the 0.3% estimate, but the USD wasn’t impressed at all.

The rate dropped and should pressure the first warning line (wl1) of the descending pitchfork, it could retest also the second warning line (wl2) of the ascending pitchfork before will climb much higher. I’ve said in the previous report that the rate could come back to retest the mentioned support levels before will climb much higher.

However a valid breakdown below the Wl2 will confirm a larger drop in the upcoming period, but this scenario is less likely to happen. A retest of the WL2 will bring us a chance to go long with target at second warning line (wl2) of the descending pitchfork.