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Since USD/CHF encountered an impenetrable resistance line at 0.9231 (now also the daily R2), it had no other choice but to decline. And, judging by the last 40 bars, it appears that the currency pair is highly likely to descend while fluctuating between two parallel trend-lines. However, first USD/CHF has to confirm 0.9185 as the resistance, otherwise the price will simply exit the bearish channel—these risks are explicitly shown by the daily technical indicators. Still, a bearish scenario in the near-term is more probable for the greenback, even though the sentiment is strongly bullish on the pair at the moment—73% of positions are long.
© Dukascopy Bank SA