USD/CHF prepares to test 0.89

As suspected, USD/CHF violated the lower boundary of the symmetrical triangle and plunged all the way down to 0.8937/20, where it is currently underpinned by the weekly and monthly S1 levels. If the U.S. Dollar continues to cede ground and slides beneath an additional support at 0.8900/0.8886, the down-trend line at 0.8740 may become the next target.

Apparently, some of the traders were discouraged by sharp depreciation of the Swiss Franc and closed their long positions, as the share of bulls in the market dropped by four percentage points to 71%. Meanwhile, there are now more buy orders placed on USD/CHF—70% of all pending commands.