USD/CHF Under Heavy Pressure

USD/CHF: under pressure

• Ichimoku Cloud;
• ADX and DI bearish;
• RSI bearish.

The US dollar is under heavy selling pressure versus the Swiss Franc. The recent breakout of the Ichimoku Base line appeared to be false as the bulls did not show any development on the upside. As a result, the USD/CHF currency pair dropped below both Conversion and Base lines, targeting the horizontal static support line that used to limit losses on May 27. The Ichimoku leading span extended the red surplus, pointing to a possible resistance range. 

The ADX and DI indicator maintained the bearish pattern as the red line is still above the green one, while the mainline is showing a robust momentum. The relative strength Index tested the 50% threshold, reflecting the bullish attempt to reverse the downtrend, and bounced off, sliding back to the ebarish territory. A test of the horizontal support should show further trend direction for the pair.                                                         

Pivot points:

R1: 0.96288 (Ichimoku Base line);

R2: 0.96788 (recent peak);

S1: 0.95444 (horizontal static support);

S2: 0.95000 (round-figure extension).