USD/CHF is trading at the 0.8847 level and it seems under massive selling pressure after failing to close above the near-term resistance levels. The price stays deep in the seller's territory, so it could approach and reach fresh new lows anytime again.
The price has increased a little in the short-term as the USDX has managed to recover. Still, the USDX has erased today's gains and it continues to stay down near the 90.00 psychological level meaning that USD/CHF remains bearish.
USD/CHF False Breakout!
USD/CHF stays way below the 0.89 psychological level and under the channel's downside line indicating a bearish outlook. The false breakout with great separation above 0.89 signals further drop.
Actually, a new lower low, bearish closure under 0.8822 validates more declines towards the 0.87 area. Personally, I believe that a bullish reversal could take shape only if USD/CHF jumps and closes above 0.8919 today's high.
- USD/CHF Trading Tips
Buy it from above the 0.8920 level and use the 0.8998 as a first upside target.
Sell a new lower low with a potential downside target at the S3 (0.8728) level.
The material has been provided by InstaForex Company - www.instaforex.com