USDCHF is breaking to new short-term lows exiting a multi month upward sloping path it was in since December. The Dollar weakness is affecting this pair also and we expect the coming weeks to continue to see it under pressure in lower levels.
Black lines- bullish channel
USDCHF has sustained a big decline over the last 20 years as shown in the weekly chart above. The last 10 years price has stopped the decline and gradually and steadily was moving higher in an upward sloping channel. Price is now showing weakness signs as price is exiting the upward sloping channel and is breaking to new 5 year lows. Such a formation usually brings price to its base and start. In this case the base is at 0.7660. Resistance and key level for bulls that they need to recapture is at 0.9850. As long as price is below that level we consider every bounce as a selling opportunity.
