USD/CHF setting up for a good dip

USD/CHF is moving in a nice downward channel and currently seems to have complete the currently targeted retracement. It has almost touched the top of the downward channel. And both long term and medium term traders will be looking to sell USD/CHF around some reasonable levels to capture an extended downward movement. Currently 0.8485 seems a very good selling level and it is almost the top of current channel. This is the area where most of the traders will be looking to sell USD/CHF. If the retracement is extended above 0.8485 level, then the next level USD/CHF will be testing is 0.8550 level. If USD/CHF manages to break above 0.8550 level, then the reversal of trend will be indicated and traders will then look to reverse their entries. Once USD/CHF resumes its downward trend, then initially it will look to target 0.8430 level and break of that will set 0.8345 as next target and further below the next level will be around 0.8275 level.

The Moving averages are also indicating the same level for consideration. The long term moving average is around 0.8550 level and this indicates that the current retracement should not exceed above 0.8550 level and similarly the short term moving average is currently around 0.8430 level and once USD/CHF breaks below that level, it will be an indication that USD/CHF has come out of the short term upward trend and has resumed long term downward trend.

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