After breaking below 0.8890 support, USDCHF rebounded from 0.8832, indicating that consolidation of the downtrend from 0.9751 is underway. Further rally is still possible and the target would be at the upper line of the price channel on daily chart. As long as the channel resistance holds, the downtrend could be expected to resume, and another fall towards 0.8500 is still possible. On the upside, a clear break above the channel resistance will suggest that lengthier consolidation of the longer term downtrend from 0.9838 (May 22 high) is underway, then further rise to 0.9400 area could be seen.
