The USD/CHF is consolidating after the reaching 1.0400. Nonetheless, short positions are recommended to be kept opened, as USD/CHF is still possible to drop with the target at 1.0133.
As it was mentioned before, on a 4-hour chart the pair set Doji candle, which was a signal for the decreasing motion. This candle developed after the pair had not broken through 1.1674 and the bears got to manage the trading direction.
In addition, USD/CHF went through Fibonacci correction level of 23.6. The successful breakout of it confirmed that this point of view is true one. Further, “Bearish Engulfing” shaped on the downward trend, which confirmed the bear dominance one more time.
If the currency pair reverses and breaks out the resistance level of 1.0701, short positions should be closed as it will aim USD/CHF at 1.1000.
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