The USD/CHF increased in the morning and jumped above a dynamic resistance, but failed to stay there as the bears have stepped in again after the US data were released. Price decreased as much as 0.9704 level, but has squeezed till the end of the day as the USDX has squeezed as well. We’ll see what will happen in the upcoming days on the dollar index because a further drop will force the currency pair to drop as well.

Technically, the price is somehow expected to drop further on the short term after a false breakout. Maybe the rate has come back to test and retest some resistance levels before will drop further.

I’ve added the USDX’s Daily chart to show you better what’s happening with the greenback on the short term. The index dropped sharply, but failed to reach the 92.49 static support, signaling that the bull could take the lead again on the short term.

USDX is developing an Inverse Head and Shoulders pattern, but only a valid breakout above the 93.81 static resistance will confirm this pattern.

The price has dropped, but failed to stay lower near the 0.9704 Friday’s low and could try to pressure the upper median line (uml) of the descending pitchfork. Only a valid breakout above the upper median line and above  the sliding parallel line (SL) will announce a further increase. Another false breakout will send the rate down again.