By Mexgroup.com

USD/CHF Erased The Morning Gains

The rate plunged after the United States data were sent to the public and has erased the earlier gains. USD/CHF is trading in the red and is pressuring a dynamic support after the false breakout above a dynamic resistance. Remains to see what will happen till the end of the day because the rate may squeeze a little after the impressive drop.

Unfortunately, the greenback has taken a hit from the United States data, which has disappointed in the afternoon, failing to come in line with expectations.

The US Retail Sales have increased only by 1.6% in September versus a 0.1% drop in August, less versus the 1.7% estimate, while the Core Retail Sales surged by 1.0%, more versus the 0.9% estimate and versus the 0.5% growth in the former reading period. Moreover, the CPI increased only by 0.5%, less compared to the 0.6% estimate, the Core CPI disappointed as well because has increased only by 0.1%, less versus the 0.2% estimate.

You can see that the rate failed to stay above the UML and now is pressuring the WL2 of the former ascending pitchfork. I’ve said in the previous reports that the rate could come down to retest the second warning line (WL2) after the false breakout above the median line (ml) of the ascending pitchfork and above the 0.9787 static resistance.

Only a valid breakdown below the WL2 will confirm a further drop in the upcoming period, while a rejection will signal a potential bullish momentum.

EUR/JPY Rising Wedge To Be Confirmed

The EUR/JPY dropped and resumed the yesterday’s minor drop. You can see that is the rate is pressuring the downside line of the Rising Wedge and looks determined to breakdown from this chart pattern. I’ve said that a valid breakdown from this pattern will signal another leg lower in the upcoming period, the first downside target will be at the upper median line (UML) of the major ascending pitchfork.

EUR/CHF Losing Altitude

EUR/CHF decreased after a little today, but looks undecided at this moment. The bulls seem exhausted and could lose significant territory in the upcoming days. I’ve said in the previous report that a rejection from the WL5 and from the upper median line (uml) will send the rate tumbling. A minor drop is expected if will really fail to close on the mentioned resistance levels.

By Olimpiu Tuns – Market Analyst

I graduated a Master in Business Administration, I am a Market Analyst / Trader on Financial Markets (forex, commodities, futures, options) for more than 6 years, I use technical and fundamental analysis for my daily activity. Founder and Market Analyst at ovtbusiness.com (Financial Markets Blog) and contributor on investing.com, actionforex.com,  countingpips.com, forexalchemy.com, etc.

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