USD/CHF - close below 0.8910, bearish trend continues
USD/CHF posted its fifth consecutive bearish week as prices continued to fall, closing below the falling wedge pattern that we commented on during last weeks analysis. After a quick retest of the support now turned resistance level at 0.8910, price continued to move lower throughout the week, held in place by a descending 4H trend line. Price remained true to this trend line for the entire week closing out at 0.8828 on Friday, well below the resistance of 0.8910.
With the break below the falling wedge pattern on the daily timeframe, and the consistent creation of new lower lows, the overall bias on this pair remains very bearish. Looking at the daily timeframe, candlesticks have started to show a diminishing bearish momentum, which may lead to a small bullish pullback in the near-term. This could happen as early as this week. Any break and close back above 0.8910 would confirm this. However, if price remains below 0.8910, any retests of this support level or the descending 4H trend line we see as good shorting opportunities.
With the break below the falling wedge pattern on the daily timeframe, and the consistent creation of new lower lows, the overall bias on this pair remains very bearish. Looking at the daily timeframe, candlesticks have started to show a diminishing bearish momentum, which may lead to a small bullish pullback in the near-term. This could happen as early as this week. Any break and close back above 0.8910 would confirm this. However, if price remains below 0.8910, any retests of this support level or the descending 4H trend line we see as good shorting opportunities.