Since February 2011, the USD/CHF pair hasn't touched these price levels.
The current levels of price between 0.9400-0.9780 are considered as a strong resistance area, as 50% Fibonacci level of the whole swing down to 1.1700-0.7050 and previous multiple tops are located there.
Now we see bearish reaction towards this resistance area which was successful in pushing the pair to the downside during this week trading days.
As we mentioned before Daily closure below 0.9380 will open the way for 0.8585 in the long-term which may take some time for the pair to reach.
After a period of consolidation without enough steam to push higher with obvious weakness of the bulls at this junction of the chart, we have a quite strong decline in price.
The pair managed to break through the lower limit of the bullish channel marked in blue, which is considered the 1st support line facing the pair now acting as resistance on retest.
We have expected a "Double Top" reversal pattern with neck-line at 0.9400 which is now approaching its target at 0.9250, we shouldn't forget to take some profits.
Now the pair is testing a short-term support level at 1.9320-0.9300 which may hold the price above for a short period allowing the pair to retest the broken support levels before resuming the expected downside movement.
Selling is recommended at the retest of 0.9400-0.9444, that is considered a good resistance area with TP at 0.9400, 0.9350, 0.9305 and then 0.9250.
SL should be H4 closure above 0.9530.
