There still is one safe haven showing great strength: the Swiss franc.
We will start with a small update about the USD/CHF, which we were talking about a few days ago. Back then, we pointed at the flag pattern and the price bouncing from the crucial resistances. We were bearish.
USD/CHF did not disappoint us and easily broke the lower line of the flag aiming south. Yesterday’s breakout triggers a legitimate sell signal.
Next, the AUD/CHF price tested crucial resistances and after drawing a flag, and went lower. The sentiment is negative and the AUD/CHF is aiming the August 2019 lows.
Lastly, we have a similar setup for EUR/CHF. A breakout of the lower line of the flag and a sharp drop. We are also mentioning this instrument to show the power of the technical analysis. The price patterns in particular. The whole drop started with the head and shoulders pattern and the breakout of its neckline. Then, we had a rectangle and the breakout of its lower line. Then a flag mentioned above.