USD/CHF has made a new lower low, it has fallen below the 0.9250 - 0.9218 support area, downside obstacle, so a further drop is favored. When the price violates a support area, technically, it is expected to resume its downside movement, downtrend.
The currency pair is located within a down channel, the breakdown below the mentioned support zone and the accelerated drop suggests that the USD/CHF could approach and reach the downside line of the descending channel.
- USD/CHF Trading Conclusion!
You can sell USD/CHF right now with a potential target at the downside line and at the 0.9000 psychological level, but you should consider placing a Stop Loss order right above the 0.9250 level (support has turned into resistance).
The second option is to wait for a potential increase in the short term, USD/CHF could come back to test and retest the 0.9250 - 0.9218 area before going towards fresh new lows. The second scenario could help us to sell this pair with lower risk.
