USDCHF for a long time moves down. Last week we saw an upside correction which reached up to the region of 50% Fibonacci correction of the entire previous downward movement.
A strong bearish response on this resistance caused the decline but did not have enough strength to establish a new lower low. Looking at the chart H4 we see that they the falls were weak enough to not reach the previous low and stopped in the area of support zone coinciding with the level of 61.8% Fibonacci correction of the entire corrective upward movement.
Currently for a week the market moves in the consolidation and in the near future we expect a test of the lower limit, that defeated could pave the way for further declines, at least in the area of support 0.7038.
Looking at the H1 chart we can see, however, that for several days the market creates a triangle formation and on the way to south is also a short-term uptrend line. It is worth noting that from a technical point of view, breakdown should take place later today (tomorrow the latest), and taking into account the dynamics of the recent declines very likely that it will support to overcome the limitations of the lower formations.
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