The US dollar is starting to move lower against the Swiss franc currency, following multiple upside rejections from the 0.9800 resistance area.
USD/CHF technical analysis shows that the pair could soon test towards major trendline support on the daily time frame.
USD/CHF medium-term price trend
The USD/CHF pair is back under pressure after bulls repeatedly failed to move price past its key 200-day moving average.
USD/CHF technical analysis highlights that the pair could test major long-term trendline support, around the 0.9400 level.
The daily time frame shows that the trendline is formed by attaching the September 2011 and January 2105 swing lows.
Due to its importance, a major reaction should be expected in the USD/CHF pair if price retests trendline support.
At this stage, a break below the 0.9600 level is required to increase medium-term USD/CHF technical selling.
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 0.9700 level.
The four-hour time frame currently shows that the price is trapped inside a broadening wedge pattern.
Large directional moves typically take place once price breaks from a broadening wedge pattern.
With the US dollar weakening, and price now approaching the 0.9600 level, it is increasingly likely that bears will soon test towards the bottom of the wedge pattern.
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 moving closer to the bottom of a broadening wedge pattern. Further losses are expected while price remains capped below the 0.9700 level.