USD/CHF 4H Chart: Channel Down

18 Jul 2017

USD/CHF 4H Chart: Channel Down

• The American Dollar is losing value against the Swiss Franc in a medium-term descending channel.
  
• The pattern started to form practically two months ago after a three day long depreciation of the Greenback, which put the currency rate below the 55-, 100- and 200-period SMAs.
  
  
• In the end of the previous week the pair has reached the second reaction high and, starting from Monday, began to gradually exit from a triple top formation.
  
• More specifically, the first hours of Tuesday trading session already showed that the pair has bypassed the weekly S1 at 0.9603.
  
• In accordance with technical theory, the rate is expected to continue the downfall approximately until the 0.95601 level, which located slightly below the weekly S2.