USD/CHF falls to seven-week lows, what's next?

Technical Analysis

Author: Justin Low | usdchf

USD/CHF drops to 0.9025, its lowest level since 16 June

USD/CHF D1 03-08
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The dollar is keeping a little softer on the day but the franc is putting up a modest advance against the greenback as sellers stay in the hunt of an eighth straight day of gains in USD/CHF, having pushed past the 200-day moving average (blue line) last week.

That sees the bias in the pair favour being more bearish now after the upside pull in July failed at the key trendline resistance as pointed out above (circled areas).

This puts the pressure back on the lower side of the forming wedge in the pair, with the 0.9000 level and trendline support around 0.8987 currently seen as key areas where buyers may lean on to limit any further downside momentum.

The dollar has continued to struggle post-Fed and the latest moves across the board continue to reaffirm that trend for the time being.

USD/CHF will have some questions to answer when closing in on the key support areas highlighted above, and a break below that could set off a sharper fall towards the May and June lows @ 0.8926-30 next.

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