USD/CHF is expected to drop further after escaping from the down channel. The downside breakout signals a potential sharp drop in the short term. The rate has retested the broken downside line validating a larger drop.
I've told you in my previous analysis that a downside breakout suggests selling. So, the outlook is bearish as long USD/CHF stays under the broken downside line. The pair could continue down towards 0.8800 if the US Dollar Index will decline further as well.
- USD/CHF Trading Conclusion
USD/CHF is almost to register a fresh new lower low, dropping somewhere below 0.8850 could bring a selling opportunity with a first target at 0.8800 psychological level. The major downside target is seen at the black downtrend line.
