The USD/CHF is still trapped inside of an extended sideways movement, has increased sharply in the previous days, but has failed to escape from the range movement, the pair pair has retreated a little today, somehow expected after the yesterday’s impressive bullish run. The USD has decreased a little versus all its rivals today as the US dollar index has decreased a little, the USDX has slipped lower, but maintains a bullish perspective as long as is trading above the 95.98 static support (resistance has turned into support), the index has jumped even above the 96.24 resistance, but now is located below this minor upside obstacle.
The US dollar remains steady after the release of the first US economic data, remains to see how will react after the all US data will be sent to the public, the ISM Non-Manufacturing PMI may increase from 51.4 to 53.1 points, signaling that the expansion continues, could reach the highest level of the last 2-months. The Final Services PMI could remain steady at 51.9 points, while the US Factory Orders could drop by 0.4% in August, the orders could decrease again after the 1.9% growth from July, could weaken the USD a little.
The currency pair could be driven by the fundamental factors in the coming hours, so will be better if you’ll keep an eye on the economic calendar in this afternoon.
You can see that the rate continues to move in rage between the 0.9634 and the0.9796 level, is narrowing right now, but most likely will have a clear direction very soon as the price action has formed a symmetrical triangle, the rate has retested the chart pattern resistance, but was unable to close right on it.
A breakout from this pattern wil bring a very good trading opportunity, remains to see the direction, the rate is challenging right now also the fourth warning line (wl4) of the former descending pitchfork, an increase above this line could attract more buyers, which will drive the rate outside the symmetrical triangle. We’ll have to wait for a valid breakout and then we can long on this pair.