USD/CHF: Bears Are Still Effective

USD/CHF Weekly

From the medium-term perspective, we see that invalidation of the breakout above the previously-broken rising green line and its negative impact on the exchange rate is still in effect. Additionally, sell signals generated by the indicators support further deterioration in the coming week.

Having said the above, let’s check what we can infer from the daily chart.

USD/CHF Daily

Looking at the daily chart, we see that USD/CHF moved slightly lower once again. Additionally, there are no buy signals, which could encourage currency bulls to act, which means that yesterday’s assumptions are up-to-date:

(…) as long as there won’t be buy signals generated by the indicators, another attempt to move lower is likely – especially when we factor in the medium-term picture. If this is the case and the pair moves lower once again, the next downside target would be around 0.9580, where the blue rising support line (based on the May and Jun lows) currently is.

Very short-term outlook: bearish

Short-term outlook: mixed with bearish bias

MT outlook: bearish

LT outlook: mixed

Trading position (short-term; our opinion): Short positions (with a stop loss order at 0.9967 and next downside target at 0.9590) are justified from the risk/reward perspective at the moment. We will keep you informed should anything change, or should we see a confirmation/invalidation of the above.