Little in the way of corrections
Looking at the 5-minute chart below of the USDCHF, what sticks out is over the last two trading days, the price has trended lower below the 100 bar MA (blue line) currently at 0.98346. The price fell below that MA at around the 1.0004 level and reached a low at 9791 today.
The price fall has also stayed below a topside trend line which actually did a better time of tracking the lower trend (see red numbered circles).
Earlier today, the pair accelerated the deline to the downside by running away from the topside trend line, and falling below lower trend lines. When that happens, it could lead to a capitulation. However, you need to start to see broken lower trend lines starting to fail. That is breaks below the lower trend lines, starting to see the price move back above.
Looking at the chart, the move to the day's low failed on the break of the lowest trend line. The pair is now trying move above the next lower channel trend line. Stay above those lines and a bigger correction may begin.
However take note....the 100 bar MA is key. It will need to be broken and stay broken (followed by the top trend line) in order to turn this trend around. Anything less, or if it breaks and fails, the buyers are really not taking back any control.
So be on the lookout for the start of a correction from oversold levels, but understand, the trend is still down. So respect that if the rally peters out at the resistance targets and pay attention to the 100 bar MA and the highest trend line. They will need to be re-broken to help turn sellers into buyers.
