The bulls on the dollar/franc pair have once again tested the trend line at 0.9137 on the D1 time frame amid the news from the Fed about the interest rate and the press conference after the FOMC meeting.
Today, the US dollar index is mainly formed by the euro/dollar pair, while the dollar/franc pair is now less important. This can be explained by the fact that the euro represents the interest of most EU countries, while the state of the franc is relevant only for Switzerland.
Therefore, the further trajectory of USD/CHF is easy to determine by focusing on the situation around the single European currency.
Meanwhile, the euro/dollar pair depreciated during yesterday's session. In the Asian session on the daily chart, it again entered the range of 1.1711-40. However, the euro/dollar pair is unlikely to drop sharply, as the record on the D1 time frame shows a long-lasting flat between the 17th and 20th figure. That is why bears will take a long time to exit this range after accumulating liquidity.
On the EUR/USD chart, we can observe the formation of the bearish descending triangle on the D1 time frame. At the moment, there is a second bullish wave being formed within this triangle. So, this is where we can trace the dollar/franc trajectory as well. The pair is now supposed to start the downtrend.
Thus, by comparing USD/CHF and EUR/USD, we can assume that the dollar/franc pair will return to its support level at 0.9053.
At the moment, we can see that USD/CHF is moving downwards. The moving average on the H1 time frame confirms this trend as it is holding above the price level. Zig Zag indicator also signals the downtrend since the key extreme points have moved lower. It is better to place short positions from the level of 0.9090 with the first target at 0.9050 and the second one at 0.9010. The Stop Loss should be placed at the level of 0.9120. We can open buy deals only after the pair settles above the 0.9150 level. In this case, the Take Profit on long positions should be set at 0.9190, and a Stop Loss should be placed at 0.9120.