USD/CHF May Be Renewing Its Drop

There may finally be a breakout to the downside of the pennant that has been developing for six and a half years on the monthly USD/CHF chart.

This pair is truly unique in terms of the sheer stubbornness of the investors and especially of the Swiss Bank not to allow any further rally of their national currency. On the other hand, however, before the sharp drop of the US dollar compared to the other main currencies (such as the EUR, the GBP, the JPY) the inertia on the markets seems that it cannot be held back any more and this time there may not be a move the Swiss Bank may try that could stop the depreciation of this currency pair.

I think that if the limit of this pennant is reached we could expect a depreciation of the pair with 3000 pips, which means a long term movement south to 0.6700.