USD/CHF broke down technically Tuesday. How bad will it get?

FXstreet.com (Barcelona) - After a couple of days of very muted action, the USD/CHF broke down below horizontal line support and turned a potentially bullish chart to fully bearish.

USD/CHF will be data dependent for the rest of the week

Now that a technical breakdown has occurred in USD/CHF, traders will be looking to sell into rallies as they approach identifiable resistance levels. Will the data flow on Wednesday create such a rally?

First out will be the Swiss monthly Statistical Bulletin at 07:00 GMT. This report presents key domestic and international economic data in graphic and tabular form. In addition, it contains the most important banking statistics from the Swiss National Bank surveys.

Then, later on Wednesday, traders and analysts will focus on interest rates and the US Dollar as they react to the release of the FOMC minutes.

Technical take on USD/CHF

Technicians have had to change the outlook for the USD/CHF cross based on Tuesday’s breakdown. The next downside target for USD/CHF in the short-term is 0.9036 (from 0.9170 currently). First resistance for USD/CHF comes in at the 8/19 peak of 0.9284.