USD/CHF Weakening in Price

USD/CHF has been trading to the downside ever since it dropped below parity level. As you can see price within this pair has been showing bearish market structure printing lower highs and lower lows. Most recent we have seen a lower low form at the 0.95500 area, with price since then retracing to the upside.

Price has so far retraced back to the 61.8% Fibonacci extension level, where we have seen several spikes and rejections. USD/CHF appears to be trapped in a small ascending triangle which is squeezing the price so that it will eventually show a break. All 3 EMA's are bearish and price is also capped by the 20EMA.

Over the next week, we will be looking for a break of the CTL (counter trendline) for a potential shorting opportunity down to the 0.94900 support which aligns with the -27.2% Fibonacci extension level. This would create a new lower low following the bearish market structure.

Chart: USD/CHF D1