Lower trend line at 0.9730
The USDCHF is trading to a new session low and has just dipped below a lower trend line on the hourly chart at 0.9730 after weaker Dallas Fed activity index for June.
Looking at the daily chart below, the January low price came in at 0.97152. That'll be the next target for the pair on more weakness. A below is obviously a new low for the year and should solicit more selling. However, I would expect the level to attract dip buyers.
Drilling even further to the 5 minute chart, the pair has been trending lower and correcting to the 38.2% retracement of the legs lower. The current 38.2% comes in at 0.97448. The 50% comes in at 0.97518 (see lowest yellow area). Stay below that level keeps the trend in tact.
SUMMARY: The USDCHF is trending lower, but the low for 2019 is being approached at 0.87152 which should slow the decline. For clues the low is in place, keep an eye on the 5 minute chart. The trend move has been correcting to the 38.2% of the recent leg lower. A move above that 38.2% and then 50% level would give dip buyers some confidence. Failure to do that, and the trend down keeps firm control.
