USDCHF attempts to break below key consolidation zone

During today's session, we can observe the weakness of the dollar against the Swiss franc, as a result of which the USDCHF currency pair fell by almost 0.5%. Technically speaking, the pair recently broke below the 50 EMA (blue line) and launched another downward impulse. Currently the pair is attempting to break below the lower limit of the consolidation zone. If it proves effective, sell-off may accelerate. The structure of the last consolidation, whose shape resembles the classic head and shoulders formation, also supports a bearish scenario. The zone around 0.9165 is therefore crucial at the moment. Should break lower occur, then investors should focus on price reaction around 78.6% and 88.6% Fibonacci retracements, as they may constitute the D point for the potential XABCD harmonic pattern.

USDCHF interval H1. Source: xStation5