FX.co ★ USDCHF breaks below key support trend line.

In previous posts we noted the importance of the upward sloping support trend line. We noted that trend would remain bullish as long as price were to respect the trend line. Two days ago USDCHF broke below the key support.

Orange line - support trend line

USDCHF is trading just above 0.91 after having broken below the upward sloping orange trend line. Next support is the horizontal key level of 0.9084 where a previous low provides support. Short-term trend is bearish and breaking below 0.9084 will open the way for a deeper pull back, even towards 0.89. Price is making lower lows and lower highs. There is no sign of a divergence by the oscillators, so we remain confident that the new year will start with USDCHF being under pressure.