Taking a look at the U.S. dollar/Swiss franc chart, there is a huge breakdown followed by a clear double-bottom pattern.
The pair fell 250 pips on Friday but the hourly chart shows strong signs of a coming retracement. The measured target of the double-bottom is 1.0274, which is nearly 100 pips above the current level. A move to their would also fit nicely into the Fibonacci retracement ‘box’ between 1.0260 and 1.0290, which represent the 50% and 61.8% levels.
As we can see, the double-bottom is a textbook fundamental pattern and if this chart holds to form, we could see a solid rally.
Any move below 1.0132, however, would be a sell signal and even anything below 1.0150 would be a good stop for a cautious trader.
On the upside, we would favour a full retracement of the big drop if USD/CHF can clear 1.0290.