USD/CHF remains depressed below 0.7675 ahead of US Retail Sales data

💡 DMK Insight

The USD’s sideways movement against the CHF hints at a market in wait-and-see mode, especially with the Retail Sales Report looming. A 1.6% drop over the last two days shows that traders are reacting to broader economic signals, and the upcoming report could either validate or challenge current sentiment. If retail sales come in stronger than expected, we might see a rebound in the USD, pushing it back towards the 0.7700 resistance level. Conversely, a disappointing report could exacerbate the current downtrend, potentially testing support around 0.7600. For traders, this is a crucial moment to monitor not just the USD/CHF pair but also correlated assets like commodities or equities that might react to consumer spending data. Here’s the thing: while the mainstream narrative focuses on the immediate report, keep an eye on how institutional players are positioning themselves. Their reactions could set the tone for the next few trading sessions, especially if volatility spikes post-report. Watch the 0.7650 level closely; it could be a pivot point for short-term trades.