Daily Forex Update: USD/CHF

The U.S. Dollar/Swiss Franc has trended lower alongside weakness in the US Dollar Basket. The USD/CHF moves lower when the Swiss Franc is able to gain on the Dollar, or the Dollar is weak. On the 240-minute chart, USD/CHF prices are currently testing the Channel Down pattern’s downtrend line resistance, which sets up an Autochartist Retracement/Correction (or "ARC") entry. ARC entries are trend-following set-ups that capitalize on corrections within the overall trend of the market. Since the Initial Trend reading, at the maximum value of ten bars, is quite strong, the market is trending lower amidst a high degree of bearish sentiment. While the strength of this downtrend would often trigger a continuation sell as prices moved lower through support, the current retracement is still a valid entry given expectation of downside follow-through.