USDCHF More downside to come unless this level breaks

This is my latest update on the USDCHF pair which on my last analysis two months ago hit both targets:


The pair is currently on a strong 3 day bearish 1D candle streak following its market top on May 16. That was achieved on the 1.236 Fibonacci extension of the long-term Channel Up it has been trading in since January 2021.

The rejection resembles that of the April 01 2021 top, which caused a drop of around -5.70%. A similar drop would take the pair on the 0.236 Fibonacci retracement level, which would be perfectly symmetrical. The 1D MA200 (orange trend-line) may come in as Support by the time it reaches this Fib level.

The correction will get invalidated however if the price breaks again bove the 1.0 Fib or when it bottoms, above the 0.786 Fibonacci, which was the Resistance during the previous recovery. In that case, I expect the pair to systematically target the higher Fibonacci extension levels one by one (1.382, 1.5, 1.618).



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