Ransquawk

The American currency starts the new year in a weak mode. On few pairs with USD we can notice gaps on opening negative for dollar. The technical layout on USD/CHF seems to be very legible. The daily chart shows a wider downward trend and probable breakout from the smaller growth channel which is currently occurring. The smaller channel looks like a typical corrective flag formation on a long term bearish background. The marked support zone is already broken, currently the supply is trying to breach the previous low from 1th December.

The weekly chart shows that in the broader perspective, from September 2015, the price moves sideways. The breaking out from the growth channel thru the bottom and breaking of the last lows suggests, therefore, that in the coming months the pair may head towards key support in the area of 0.9450.

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