This builds on my post from Wednesday here and yesterday here. As highlighted at the time, USD/CHF was on the verge of a much steeper drop as it flirts with its lowest levels since January 2015. And alas, here we are.
If you need a refresher, the last time the pair traded this low was more than eight years ago when the SNB decided to pull the rug from under the market's feet with regards to the EUR/CHF floor.
That is an extremely unique situation and one that isn't so much so a strong reference point to do much technical analysis.
I will repeat my words from the previous linked posts:
"The rout will stop when it stops. It's now a case of being wary not to catch a falling knife, especially since the dollar is looking like it is set to fall further against other major currencies as well.
The January 2015 low is going to be a different level for most people, depending on your broker and which chart source you are looking at. For mine, it is showing 0.8336 but it could be higher or lower for others. As such, this is one of those times where the exact level isn't going to offer much of a guide as to where the key support might be.
Instead, considering the pocket of space that price action can still fall from here, it puts trading sentiment in a spot where sellers are well in control and as mentioned, the rout will stop when it stops. There's no point trying to pluck support levels out of thin air from here."
