USD/CHF moves southwards in a 3 day descending channel.
The set-up points to a pullback to 0.9000 handle
The descending channel resistance could limit any attempt to recover.
The USD/CHF traded lower for a fifth straight session on Tuesday declining to around mid-0.9000s in the last hour. which is the lower end of a three-day descending trend-channel. This now acts as a key level for intraday traders.
On both the hourly and daily charts technical indicators remain bearish but not oversold. The set-up is bearish and points towards further losses following the rejection of 0.9200 on USD weakness.
The current risk on mode unsupportive of safe haven Swiss Franc meaning any move lower for the pair could be limited, With this in mind, waiting for a meaningful move lower through the support before taking a sell position could be wise .
The 0.9000 psychological level could then become a target for the sellers, a meaningful break through here could open the door to 0.8930-25 support. This slide could extend towards the 0.8900 mark prior to mid-0.8800s.
Descending channel resistance, close to 0.9085 could limit any attempt to move higher. Should this level be broken through on the upside the 100-hour SMA, close to the 0.9100 handle could be tested. A move beyond here would negate the bearish bias trend.
In this case USD/CFD could head back to 0.9200 handle with intermediate resistance near mid-0.9100s and 50-day SMA, ( 0.9185 )