Watching the Downtrend on the USD/CHF

The USD/CHF has been trending lower as the Dollar Index has been weakening. Both short and longer term intraday charts are setting up within Continuous Channel Down Emerging patterns. A very low Initial Trend might be the main indicator of a breakdown or breakout. The U.S. Dollar is finding support this morning and if the dollar is able to gain on the franc, there is more chance of a downtrend line break than a continuation. The Initial Trend on both the 30 and 240 minute charts shows low trend strength on the USD/CHF.







The downtrend line is the decision level on both charts as this line will determine where the resistance will hold and set up a continuation play off resistance which would be a short from the 1.0700 area on the 30 minute chart and 1.0740 on the 240 minute chart. If the downtrend line does not continue it will probably trigger a breakout. This is if prices are able to follow through on the 30 minute chart since the 1.0700 is a major psychological level.


For further information, visit http://autochartist.com