USD/CHF technical analysis: Breaks below weekly ascending trend-channel support ahead of Powell
|- The USD/CHF pair stalled its strong positive move and witnessed a dramatic intraday turnaround from three-week tops in reaction to China's retaliatory tariffs on $75 billion worth of US goods.
- The sharp intraday pullback has now dragged the pair farther below a support marked by the lower end of weekly ascending trend-channel and already seems to have confirmed a bearish breakdown.
Meanwhile, technical indicators on the 1-hourly chart quickly drifted into the bearish territory and have been losing positive momentum on 4-hourly/daily charts, further adding credence to the negative outlook and setting the stage for an extension of the corrective slide.
A follow-through weakness below the 0.9800 handle will reinforce the bearish set-up and turn the pair vulnerable to accelerate the slide further towards 0.9775 horizontal zone en-route weekly lows - around the 0.9760 region - and ahead of the 0.9730 support area.
On the flip side, the ascending trend-channel support breakpoint - around mid-0.9800s - now becomes immediate resistance, above which a bout of short-covering might assist the pair to aim back towards the trend-channel resistance - currently near the 0.9880-85 region.
USD/CHF 1-hourly chart
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