Our USDCHF forecast sees the pair moving sideways in the short term after reaching static support. It has increased a little today, trying to retest the broken dynamic support. The pair could resume its fall if the US Dollar Index slips lower after its temporary rebound.
The US inflation data will be released tomorrow and could shake the markets. The CPI is expected to increase by 0.5% in June versus 0.6% in May, while the Core CPI could increase by 0.4% compared to 0.7% in the previous reporting period.
The forex trading community will also be watching the Switzerland PPI will be released tomorrow as well and is expected to increase by 0.4%. The pair will be driven by fundamentals tomorrow. USD/CHF should drop if the DXY drops, and conversely it could increase if the index increases.
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USDCHf forecast – technical analysis: breaking above weekly pivot to signal upside
Our USDCHF forecast notes that the pair has found support on the 38.2% retracement level and now it has retested the ascending pitchfork’s lower median line (lml). Technically, it has registered only a false breakout through the lower median line (lml).
It remains to be seen what will really happen as the pair seems undecided right now. Coming back within the ascending pitchfork’s body and jumping above the weekly pivot point (0.9179) could really signal a potential upwards movement.
On the other hand, staying outside of the pitchfork’s body followed by a new lower low could really bring a deeper drop. USD/CHF could move sideways between the 61.8% and 38.2% levels.
Consolidating above the 38.2% retracement level could really signal that the downside is over and that USD/CHF could develop a new swing higher towards the 61.8% retracement level.
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