USD/CHF on the verge of a steeper drop

<p>The pair has been on a steady downtrend since November last year and that run is still very much going. The recent bounces in March and June ran into resistance from its 100-day moving average, and sellers leaned on that to keep the momentum going. Right now, we're seeing price decline further this week to below 0.8800 again.</p><p>That puts the 2021 low of 0.8757 in focus as a break below that will see USD/CHF fall to its lowest levels since January 2015 – when we saw the whole SNB fiasco in removing the EUR/CHF floor.</p><p>In other words, there is very little technical guidance once we do get a firm weekly break below 0.8800 as well as the 2021 low mentioned above.</p><p>With the dollar on the verge of a breakdown across several charts, that could definitely see USD/CHF downside accelerate considering the lack of technical support beneath what we are seeing now.</p><p>Things are certainly shaping up for the next downside leg in the dollar and this is one chart that could see a strong move, if you're going to go by the technicals at least.</p>

This article was written by Justin Low at www.forexlive.com.