The USD/CHF currency pair is continuing downside movement after a slight rollback. Nevertheless, the viewpoint at the pair remains bearish as it is still in a downtrend after a successful attempt to break the Fibonacci 61.8 correction level.
Earlier in a 4-hour graph the USD/CHF formed a Shooting Star candlestick, indicating downside movement confirmed further.
This candlestick shows that the pair demonstrated upside movement during several days, however, it rebounded after an unsuccessful attempt to break the 0.8946 level. At the next attempt of the bulls to fixate above 0.8900 the bears started to increase their influence and formed this candlestick.
Break of the support level 0.8747 proved this point of view. Successful break of the 0.8458 level, which is the Fibonacci projection level 61.8 from 0.9342 to 0.8552 on 0.8946, targeted the pair to 0.8350. Its break will probably lead to a downside movement to 0.8300.
The downside movement is also supported by the fact that the bearish candlestick combination Falling Three Methods is likely to be formed in a 4-hour graph.
Stop Loss should be placed slightly above 0.8552 as the break of this level will target the pair to 0.8747 and will lead to the formation of a short-term bottom at 0.8326..
