FX.co ★ USD/CHF deeper drop activated

USD/CHF New Downtrend!

The USD/CHF pair drops at the time of writing after ignoring the 0.9284 - 0.9301 demand zone which represented a downside obstacle. As you can see on the H4 chart, the price tested and retested the downtrend line which acts as a dynamic upside obstacle.

I've told you in my previous analyses that staying below the downtrend line and dropping below the demand zone may activate more declines.

USD/CHF Trading Conclusion!

After dropping below the demand zone, the rate could try to come back to test and retest the broken levels before resuming its sell-off. Technically, the current breakdown may activate a larger drop as long as it stays below the downtrend line and could help the sellers to catch a downwards movement.