Technical analysis
The daily time frame shows that the USDCHF pair has a negative price divergence. The MACD indicator shows that the signal line has been falling while the price has rising.
The daily time frame continues to show that a bearish head and shoulders pattern is in play while the USDCHF pair trades below the 0.9280 resistance level.
What the possible outcomes are
In our most likely scenario, the USDCHF pair will start to decline back towards the 0.9130 level as the negative divergence and a head and shoulders pattern unfold to the downside.
Alternatively, the USDCHF pair could invalidate the bearish head and shoulders pattern and then rally towards the 0.9400 resistance level.
Key levels
Support 0.9130 0.9050
Resistance 0.9280 0.9400
