In the first week of June, the USD/CHF exchange rate suffered a strong drop, during which the trend line from the 2018 low was defeated. In addition, the closing took place under the support at 0.9893, where the March 2010 low was located.

However, last week the course returned above the 0.9893 support and the broken trend line. At the same time, an inside bar was formed on the weekly chart, where the prices of the previous week are in the range of the preceding week’s quotations.

USDCHF Weekly

As you can see in the weekly chart below, the price breaks at the end of the week the mother candle minima. The question remains open whether the seller will manage to keep the quotations below 0.9853 at the close, which would confirm the direction of the strike.
Continuation of the USDCHF drops could encourage to look for sell opportunities at the daily interval next week. In this scenario, the resistance zone may be the level of broken support at 0.9906. The nearest target is in the yesterday’s low point, and the next one is this year’s minima around 0.9720.


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