New week starts with the weaker USD. One of the best setups with the falling greenback can be spotted on the USD/CHF. According to the price action rules, we have much bigger chances for a further drop.
Two weeks ago, the price broke the long-term up trendline, which in theory, activated the sell signal. The decline was very mild though. Price stayed relatively high and on Friday, tested the up trendline as a closest resistance. The test was positive for sellers as the USD/CHF created a shooting star on the daily chart. That opens us a way for a new drop. As you can see, traders are following this signal today and the price is drawing a candle with a long bearish body. The first aim was already reached at the end of the European session – USD/CHF touched the support on the 0.99 (yellow).
If you missed the initial sell signal, now is not the best time to sell. Price being so close to the support is not the area, where traders should go short. Next occasion will be opened, when the price will break the yellow support, which for now, is very likely to happen.