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USD/CHF Trading Within Falling Channel Resistance

When looking at the daily USD/CHF chart ,we see that the pair has been bearish, but a double bottom is keeping it in consolidation since March.


(usdchf daily chart, 7/7)

Today's price action could be turning USD/CHF back towards the double bottom. Notice price holding below the 200-day SMA which is at 0.8950. Also, today's candle looks like an outside candle, adding to the bearish signal.

In the 4H chart, you can see price action holding within a falling channel. In the near-term the 0.89-0.8910 area is key support. You have a previous support pivot here as well as the 50-SMA in the 4H chart. Also, if the RSI holds above 40, July's bullish attempt might not be over. 


(usdchf 4H chart, 7/7)

Otherwise, below 0.89, and with the 4H RSI below 40, the USD/CHF would reflect bearish continuation. First the July lows around 0.8860 will be support, but below that, the double bottom shown in the daily chart is in trouble, and the 0.87 would be in back in play.