USD/CHF 4H Chart: Channel Down

Source: Dukascopy Bank SA
© Dukascopy Bank SA
There are two conflicting signals emerging at the moment. On one hand, there is a bearish channel developing since March, and it implies a sell-off from 0.95, where the upper boundary of the pattern coincides with the monthly PP and 200-period SMA. On the other, the pair has made two distinct bottoms near 0.91, and this implies a breach of the May 12 high with a follow-up rally beyond 0.95. The technical indicators do not bring clarity into the situation, but given the seniority of the parallel bearish trend-lines, the chance of supply at 0.95 withstanding the buying pressure is higher than the probability of a break-out to the upside.
© Dukascopy Bank SA
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