The US Dollar declined recently and broke the key 0.9850 support area against the Swiss Franc. The USD/CHF pair broke the 0.9820 and 0.9800 support levels to move into a bearish zone.
There was also a close below the 0.9850 support and the 50 hourly simple moving average on FXOpen. The pair traded as low as 0.9787 and later started an upside correction.
The pair moved above the 0.9800 resistance and a bearish trend line on the hourly chart. There was also a break above the 38.2% Fib retracement level of the recent decline from the 0.9870 high to 0.9787 low.
In the short term, the pair may perhaps continue to correct higher, but it is likely to face a solid resistance near the previous supports at 0.9840 and 0.9850. Moreover, the 50 SMA is near 0.9840 and the 61.8% Fib retracement level of the recent decline.
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