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The USD/CHF price stands at 0.9201 level at the moment of writing. The bias is still bullish despite the most recent drop. Technically, a temporary decline was somehow expected after registering a significant rise.

The US Dollar could take full control again, and it could dominate the currency market if the United States data comes in better than expected later today. The Flash Manufacturing PMI is expected at 62.0 points in July below 62.1 in June, while the Flash Services PMI could remain steady at 64.6 points.

DXY’s price action signaled that it maintains a bullish bias. The false breakdown with great separation through the immediate support levels signaled strong bullish pressure. The Greenback should appreciate versus its rivals if the Dollar Index jumps higher.

USD/CHF price technical analysis: on way to breakout

The USD/CHF pair has printed a down-channel continuation pattern. Registering an upside breakout from this pattern could validate an upside continuation.

It has found resistance at the 61.8% retracement level. That’s why it has printed a temporary retreat in the short-term horizon. However, the USD/CHF pair could resume its upward movement after failing to stabilize under the 38.2% retracement level.

The pair is trapped between the weekly pivot point (0.9168) and the R1 (0.9219) levels. An upside breakout from this range and through the downtrend line could activate an important growth.

The USD/CHF’s false breakdown with great separation under the weekly pivot point signaled strong buyers and an imminent upside breakout. Still, you have to be careful as long as the pair stands below the downtrend line.

A false breakout with great separation above this line or a major bearish engulfing could send the rate down again. Personally, I believe that better than expected US data could push the rate above the immediate obstacles.