Nathan BatchelorThe US dollar is under heavy downside pressure against the Swiss franc currency, as traders move away from the greenback due to political uncertainty in the United States.
USD/CHF technical analysis shows that the pair may fall to a fresh multi-year trading low.
USD/CHF medium-term price trend
The USD/CHF pair has been falling sharply lower this week as traders move away from the US dollar in favour of other currencies.
Strength in the euro currency may also be bearish for the USD/CHF pair due to the strong negative price correlation it shares with the EUR/USD pair.
USD/CHF technical analysis shows that the pair is approaching major long-term trendline support, around the 0.9400 level.
Technical analysis shows that weakness below the 0.9400 level exposes the pair to further selling towards the 0.9280 and possibly the 0.9100 level.
Continued weakness below the 0.9600 level should be considered extremely bearish for the pair over the medium-term.
USD/CHF short-term price trend
USD/CHF analysis shows that the pair has a bearish short-term bias while the price trades below the 0.9690 level.
The four-hour time frame currently shows that the price is attempting to break under a broadening wedge pattern, around the 0.9575 level.
According to the size of the broadening wedge pattern, a direction move of around 300 points may take place once a breakout occurs.
Breakouts from broadening wedge price patterns often provoke strong directional moves.
Traders should note that the broadening wedge pattern is currently located between the 0.9575 and 0.9830 levels.
USD/CHF technical summary
USD/CHF analysis shows that price is now testing the bottom of a broadening wedge pattern. Selling towards the 0.9400 to 0.9300 support area is possible at this stage.
