USD/CHF reaches 0.9505 as expected

USD/CHF Down Channel!

The USD/CHF pair resumed its downside movement after dropping below the 0.9573 former low. It has reached the 0.9505 lower low (historical level) where it has found strong demand. Now, it has bounced back which was natural after its massive drop.

Technically, the rate is trapped within a down-channel pattern. As long as it stays under the downtrend line, the USD/CHF pair could drop again. The downtrend line is seen as an upside obstacle. 0.9573 and 0.9606 are seen as upside obstacles as well.

On the other hand, the 0.9505 today's low represents a downside obstacle. The rebound could be only a temporary one, USD/CHF could come back down after failing to stay above the 0.9573 level.

USD/CHF Trading Conclusion!

Dropping and stabilizing below 0.9505 could announce more declines and could bring new selling signals.