USD/CHF is trading in the red after ending its temporary rebound. It’s located at 0.9160 and it could approach and reach new lows soon if the US Dollar Index will resume its downside movement.
Still, the pair stands above critical support levels, so only a valid breakdown could bring a new selling opportunity. The bias is bearish, that’s why we have to look for a short signal around the current levels.
Technical Analysis!
USD/CHF has increased a little to retest the 38.2% retracement level and now it has dropped below the weekly S1 (0.9162). The bias is bearish as the price stands below the downtrend line.
The immediate support is seen at the descending pitchfork’s lower median line (lml). Dropping and stabilizing below it could signal a deeper drop.
Actually, a new lower low, a bearish closure below the 0.9128 could activate a sell-off with a first downside target at the S3 (0.9036).
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