The US dollar is mixed in USD/CHF trading during the morning session, remaining near record lows. The day before, quotes managed to overcome 0.7900; however, there are still no fundamental factors that would contribute to strengthening the bullish impetus on the market. Moreover, today, at 14:30 (GMT+2), the June report on the US labor market will be presented, which can only accelerate the negative dynamics in the asset.

A fall is possible.

On the daily chart, the upward correction ended as the second wave of the higher level (2) of 5, and the third wave (3) of 5 and the wave 1 of (3) develop. On the four-hour chart, the fifth wave of the lower level v of 1 is developing, within which the wave (iii) of v has formed. If the assumption is correct, after the correction (iv) of v, the USD/CHF pair will fall to the levels of 0.7800–0.7500. In this scenario, critical stop loss level is 0.8214.

The USD/CHF pair is trading around 0.7890 within a long-term downward trend, remaining under pressure from the likely imminent approval of the new bill by US President Donald Trump, which implies a significant reduction in the tax burden on businesses. 

On the four-hour chart, the USD/CHF pair is moving in a downtrend, holding at 0.7986. It is worth noting the construction of the Bearish Marubozu candlestick analysis pattern below 0.8246, after which the instrument’s quotes began to decline actively.

The USD/CHF pair fell by 1.7%, reaching the April low of 0.8040, amid a 1.35% decline in the USDX following the ceasefire agreement between Iran and Israel.