USDCHF: Has the Pair Topped Out?

The USDCHF pair has failed to post new highs over the last couple of days and, it was flattish on Wednesday as it was at around 0.9920 during the London session.

The daily chart for this pair is reflecting a negative image as the greenback did not manage to rise above 0.9950 and the daily candles resemble a big reversal pattern, consisting of two or three bearish pin bars. Therefore, if the price dips below the support of 0.99, we could see a larger correction, with the first target at around 0.9860, where previous lows and highs converged.

More support could be seen in the 0.98 region, where the 50-day moving average and the June lows are located.

On the upside, should the pair finally clear the 0.9950 resistance, the price might accelerate toward parity - which might be considered as the key psychological selling area.

The outlook may remain neutral as long as the pair trades within the 0.99 - 0.9950 range.

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