The USD/CHF exchange rate has been guided by a medium-term descending pattern. The pattern was established in early May and has driven the rate lower in between the line of a dominant ascending channel.
Following a test of the bottom border of the dominant channel late last week, bulls tried to strengthen; however, a resistance cluster formed by the combination of the 55– and 200– hour SMAs and the monthly pivot point at 0.99 pushed the rate south.
As for near future, it is likely that the currency exchange rate to strengthen this week toward the 100- hour simple moving average. Meanwhile, technical indicators are in favour for bulls to grow stronger during the following trading days.
