The USD/CHF plunged aggressively and seems unstoppable on the Daily chart. Price has dropped more than 320 pips since Tuesday and could reach fresh new lows in the upcoming days as the  USDX may resume the bearish momentum. The rate could drop further because we don’t have any support to stop this drop.

It could be attracted by a dynamic support, so it could drop much below the 0.9200 psychological level. Right now is pressuring the 0.9300 psychological level, is hard to believe that this level will hold. However, a rebound is somehow expected on the short term after the impressive sell-off but remains to see when we’ll have this bounce back.

The greenback depreciated versus all its rivals even if we had some good data from the US today, the Unemployment Claims have come in better in the previous week, the indicator was reported at 233K, much below the 239K estimate, the CB Leading Index increased by 0.6%, beating the 0.5% estimate and the 0.4% growth in the former reading period.

The greenback has taken a hit from the New Home Sales indicator, which has decreased from 689K to 625K, much below the 679K estimate.

Price plunged below the median line (ml) of the minor descending pitchfork and could approach and reach the lower median line (lml) in the upcoming days if the USDX will drop further. You can see that the rate has increased a little in the last hours, it could retest the median line (ml) of the descending pitchfork before will drop deeper. A false breakdown below the median line will signal an oversold and a potential minor rebound.

The rate could recover in the upcoming days after the massive drop, but you should know that the perspective remains bearish on the Daily chart after the impressive breakdown below the second warning line (WL2) of the ascending pitchfork.