The franc continued status as the safe haven currency is pushing the USD/CHF lower still. The Falling Wedge is close to be broken as prices sink through the downtrend line support of the chart pattern.
The daily USD/CHF shows just how dominant the franc continues to be over the dollar. The downtrend is close to triggering a trending pattern continuation short sell as the downtrend accerlerates.
Chart pattern alert courtesy of Autochartist.
The breakdown of the pattern triggered a continuation entry which relies on continued momentum below the 0.8400 level. My issue with any continuation entry of a trending pattern is that the risk/reward is usually not as good as a corrective entry (swing trade).
It's very important to pay attention to HOW prices behave before, during, and after any "00" level. In this case what's needed is ACCELERATION through the 0.8400 level.
PowerStats graphs courtesy of Autochartist.
The challenge in waiting for a corrective entry is that the 34 period EMA low and the upper downtrend line resistance are quite far away and therefore not a near-term entry that has proximity. Recognizing key levels on a chart is important, as is recognizing how likely it is that the levels will be reached.