Hello traders! Below is the USD/CHF 16-hour chart, where we can observe the formation of the triangle pattern. We can also see that price has reached and rejected the 200 Exponential Moving Average for two consecutive times, which could mean that there are still more sellers rather than buyers.
While the price remains below the 0.9700 psychological resistance, it is highly probable that USD/CHF will initiate yet another wave to the downside. And there are multiple targets to watch. It could produce a double bottom at 0.9600 area, but if this support will be broken, USD/CHF is expected to move lower. The next target becomes 50% Fibs at 0.9516, and the final target is seen at 38.2% Fibs, which is 0.9437.
On the 3-Hour chart, we can also observe the rejection of the 200 EMA on two occasions. While price has produced spikes above the EMA, there was no break and close above these spikes, which also suggest bearish sentiment. The downtrend trendline was rejected and the RSI oscillator formed a bearish divergence. Perhaps it is the very beginning of yet another selloff for USD/CHF.
Bias: Strongly bearish while below 0.9700
Potential Resistance Zone: 0.9670 – 0.9700
Potential Targets: 0.9595, 0.9516, 0.9437
Have a profitable trading!