Looking at the daily chart, we see that the situation remains almost unchanged as USD/CHF is trading around the previously broken upper border of the purple rising trend channel. Earlier today, the exchange rate dropped below this line, but in our opinion, this development will turn bearish only if we see a daily closure under this resistance line.
Will we see such price action? On one hand, the RSI, the CCI and the Stochastic Oscillator generated the sell signals, suggesting further declines and (at least) a test of the yellow zone created by the mid-August highs and the 38.2% Fibonacci retracement.
However, on the other hand, as long as there is no daily closure inside the purple rising trend channel, the recent drop could be a verification of the earlier breakout, which would translate into one more move to the upside. Therefore, waiting at the sidelines for today’s closure is justified from the risk/reward perspective.