The USD/CHF has been sending confusing signals over the last year - setting and re-setting weekly ranges (brown lines in chart above).

Having first identified a bearish divergence from Nov-12 to Jan-13, the USD/CHF traded 2x1 (time x price) creating a bearish zigzag pattern.

This pattern is setting up a nice downward trajectory. Having broken 0.9059, we will expect the USD/CHF to trade lower to 0.8250.

The last piece of the puzzle is to identify the strength of intra-day volatility. For it to break below a weekly support, we would be expecting higher volatility (as shown in the chart below).

Based on this - applying a similar 2x1 (time x price) projection - I have a target of 0.8750 by early December.

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