USD/CHF is under massive selling pressure and is almost to hit the crucial support level again. A downside breakout will suggest a further drop in the upcoming period. The greenback drops as versus its rivals as the US Dollar Index is trading in the red.
The currency pair is bearish after the failure to make another higher high, but it remains to see how it will react when it will touch the near-term major support.
USD/CHF is trading in a range, the support is seen at 0.9056 and at the downside line of the descending channel. A valid breakdown will validate further drop, while a false breakdown with great separation will definitely suggest another bullish momentum, leg higher.
The pair has failed to approach and reach the 0.9241 former high signaling strong sellers and an imminent drop.
- USD/CHF Trading Tips
Buy USD/CHF if the price registers a false breakdown with great separation below 0.9056, or if it makes any reversal pattern around the support area. This scenario will suggest another momentum towards 0.9241 high.
Sell a valid breakdown (close below and retest) below the downside line of the descending channel, the S3 (0.8929) level could be used as downside target.
