Technical outlook:
USDCHF dropped to 0.9630 on Monday after reversing sharply from the 1.0050 highs over the last week. The currency pair might be drifting within a potential triangle consolidation and could continue trading within a range between 1.0060 and 0.9550. Bulls might be looking to hold prices above 0.9550 in the near term.
USDCHF has produced a religious uptrend since registering the 0.8760 lows on January 06, 2021. Bulls remained in control and managed to settle at highs around 1.0064 before pulling back sharply through 0.9550. Please note that 0.9550 is also close to the Fibonacci 0.382 retracement of the entire rally between 0.8760 and 1.0064.
USDCHF might continue drifting sideways for a few more trading sessions before breaking out higher above 0.0064. Please note that the potential remains for a drop towards 0.9360 if prices break below 0.9550 going forward. Also, note that 0.9360 is the Fibonacci 0.618 retracement of the above rally and potential bullish reversal zone.
Trading plan:
Potential drop through 0.9350-60 against 1.0064
Good luck!
