© Dukascopy Bank SA
The U.S. Dollar has been depreciating vis-à-vis the Swiss Franc for already a month and, using the last 360 bars, we may construct a channel down on an hourly chart with decent levels of quality and magnitude.
Taking into account that USD/CHF is moving away from the lower edge of the formation, i.e. is undergoing a bullish correction, the 200-hour SMA is unlikely to delay the current rally for a prolonged period of time, the target for the near term is the upper boundary of the pattern at 0.9323 (reinforced by the daily R2), where a strong sell-off down to 0.9160 is expected to commence.
© Dukascopy Bank SA