By Mexgroup.com

USD/CHF Drops Like A Rock

Dropped sharply on Thursday and resumed the Wednesday’s bearish candle as the USDX failed once again to close above the 93.81 static resistance. USDX stays also below a dynamic resistance, signaling a minor drop in the upcoming days. The index dropped despite the mixed US economic data and is located right above the 93.60 level.

I want to remind you that only a valid breakout above the 93.81 static resistance will confirm a further increase. Technically, the index was somehow expected to increase further as the behavior changed on the daily chart.

Unfortunately, the USD wasn’t impressed by the Unemployment Claims amazing drop, the indicator was reported at 232K in the previous week, much below the 240K estimate and versus the 244K in the previous reporting period, the Philly Fed Manufacturing Index dropped from 19.5 to 18.9, has come in better versus the 18.3 estimate. Moreover, the Capacity Utilization Rate and the CB Leading Index have come in line with expectations, only the Industrial Production has disappointed because has increased only by 0.2%, less versus the 0.3% estimate.

Price decreased sharply since Wednesday and invalidated, for now, a further increase. Could drop much deeper after another false breakout above the median line (ml) of the minor descending pitchfork. A further drop will be confirmed if will make a valid breakdown below the second warning line (WL2) of the former ascending pitchfork.

Only a rejection from the WL2 and a valid breakout above the median line (ml) will signal a potential Inverse Head and Shoulders pattern.

EUR/CHF Reached Critical Support

EUR/CHF plunged and extended the sell-off, but now has touched a crucial support area. A valid breakdown below the confluence between the upper median line (uml) with the WL3 will validate a further drop. Technically is expected to drop further after the failure to stay above the wl1 and above the WL4. We’ll have an important downside target at the median line (ml) of the minor ascending pitchfork.

GBP/JPY On The Way Down

Price goes down aggressively erasing everything in its way as the Nikkei stock index has dropped sharply on Thursday. JP225 index failed to stay above the 19700 major static resistance and now is approaching the 19309 previous low. A further Nikkei’s drop will help the Yen to dominate the currency market. GBP/JPY should reach the warning line (WL1) in the upcoming days.

By Olimpiu Tuns

Market Analyst

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The post Daily Market Report – USD/CHF Under Lot Of Bearish Pressure August 18, 2017 appeared first on mexgroupblog.