USD/CHF weekly chart
The pair has been on a steady downtrend since November last year and that run is still very much going. The recent bounces in March and June ran into resistance from its 100-day moving average, and sellers leaned on that to keep the momentum going. Right now, we’re seeing price decline further this week to below 0.8800 again.
That puts the 2021 low of 0.8757 in focus as a break below that will see USD/CHF fall to its lowest levels since January 2015 – when we saw the whole SNB fiasco in removing the EUR/CHF floor.
In other words, there is very little technical guidance once we do get a firm weekly break below 0.8800 as well as the 2021 low mentioned above.
With the dollar on the verge of a breakdown across several charts, that could definitely see USD/CHF downside accelerate considering the lack of technical support beneath what we are seeing now.
Things are certainly shaping up for the next downside leg in the dollar and this is one chart that could see a strong move, if you’re going to go by the technicals at least.