The USD/CHF drops further and resumed the amazing bearish movement. Price drops aggressively as the USDX seems very heavy again. A further USDX’s drop will force the USD to lose more ground versus its rivals. The dollar index has retested a dynamic resistance (support has turned into resistance) and now is somehow expected to drop further.

The greenback continues to go down even if we had some very good numbers from the United States, on the other hand, the CHF increases on the mixed Switzerland data. The Switzerland Manufacturing PMI increased from 65.2 to 65.3 points, even if the economists have expected to see a drop to 64.1 points, but unfortunately, the Retail Sales have increased only by 0.6%, less versus the 1.5% estimate. The SECO Consumer Climate was reported at 5 points, much higher versus the 2 point estimate.

The USD drops even if the Unemployment Claims have decreased unexpectedly in the previous week, were reported at 230K, much below the 237K estimate, the Prelim Unit Labor rose by 2.0%, while the Prelim Nonfarm Productivity dropped by 0.1%, even if the traders have expected to see a 0.8% growth. The ISM Manufacturing PMI decreased less than expected, from 59.7 points to 59.1 points, it has come in better versus the 58.7 estimate, the Construction Spending surged by 0.7%, beating the 0.4% estimate, while the ISM Manufacturing Prices climbed from 69.0 to 72.7 points, but unfortunately the USD has ignored to positive numbers.

The rate plunges after the retest of the broken median line (ml) of the minor blue descending pitchfork. Technically, it is expected to be attracted by the lower median line (lml) of the descending pitchfork.  Support can be found at the third warning line (WL3) of the former ascending pitchfork. Actually, it could be attracted by the confluence former between the WL3 with the lower median line (lml). Only a failure to reach the mentioned level will signal an oversold and a potential rebound.