FX.co ★ Fake breakout in USDCHF.

USDCHF had broken out of the bearish channel as expected earlier today but what was not expected was the reversal. Staying out of the bearish channel was only for a short while as price has made a strong reversal and is now back inside the bearish channel it was in, since beginning of October.

Blue lines - bearish channel

Orange line - major support trend line

USDCHF reversal today is not very promising for bulls. Of course bulls continue to hope for a reversal as long as price is above the major support trend line at 0.9080. It is important for bulls to recapture 0.9150 in order to regain control of the trend. Inability to do so, will be a sign of weakness and can lead USDCHF to making new lows below 0.9080.