Last December 10, the US dollar versus the Swiss Franc (USDCHF) currency pair was forming a rising wedge pattern on the daily chart and was bound to breakdown according to my colleague’s analysis (kindly check here) and afterwards, it broke down. Upon its descent, another bearish pattern came on the way and it was a rectangle which I pointed out on my post last February (kindly check here). Well, rectangle patterns could either be bullish or bearish but what determines its breakout bias is the current trend and our case here was a downtrend.
Just a while ago, the USDCHF marked a new all-time low of 0.8383. In layman’s terms, 1 USD is now equal to 0.8383 CHF. By the looks of it, the US dollar could weaken some more against the Swiss Franc as the trend suggests. However, there could be some heavy buying pressure at the 80.00 psychological level on its way down. In any case this forex pair rallies, its immediate hurdle is the 1-year downtrend. If that breaks, the next resistance could be the 89.00-90.00 levels. However, as long as the downtrend remains intact, I’d stay bearish on this.