The USD/CHF has dropped sharply today and has resumed the last days decrease, has managed to touch new lows and is somehow expected to drop further because looks too heavy to be stopped on the short term. Has fallen below an important support level, but he could try to test and retest the broken support level before will resume the corrective phase. Is very close to escape from a range movement, this situation will attract more sellers, which will drive the price towards fresh new lows, could approach and reach the parity in the coming days if the USDX will slide further.

The US data have come in mixed in the last hour, the Retail Sales have increased unexpectedly higher in December 2017, have surged by 0.6%, more versus the 0.5% estimate, have continued to increase after the 0.2% growth from November, while the PPI indicator has beaten the expectations as well, has increased by 0.3%, more compared to the 0.1% estimate, but less versus the 0.4% growth from the previous reporting period. Unfortunately the Core Retail Sales have failed to reach the economists prediction, the indicator has increased only by 0.2%, even if the estimate was 0.5%, moreover the Core PPI has disappointed as well because has increased only by 0.2%, less than the 0.3% forecast, we’ll see what impact will have the release of the Prelim UoM Consumer Sentiment  and the Business Inventories report.

The price has increased after the US data release, we had some good figures, which have boosted the greenback, remains to see what will happen in the coming hours because the rebound could be only temporary. The rate has increased and could challenge the 1.0091 static support, you can see that this level has represented a very strong support, the rate wasn’t able to close below this obstacle. A valid breakdown below the 1.0091 level followed by a retest of the broken support levels will open the door for more declines, the major downside target remains at the lower median line (LML) of the major ascending pitchfork.