The USD/CHF pair is currently undergoing a correction after a rally in late June and early July. This correction appears to be unfolding in the form of a wave C within an ABC corrective pattern.
The decline in USD/CHF suggests that it is in the process of completing the wave C of a three-wave ABC correction. This correction follows a rally that occurred between the lows on June 18 at 0.8827 and the peak on July 3 at 0.9051.
The pair has not yet completed the wave C, but it has already reached the conservative target for this wave, which is the Fibonacci 0.618 ratio of the length of wave A. If the decline continues, USD/CHF could find support at the 200-day Simple Moving Average (SMA) at 0.8883.
On the other hand, a close above the high on July 10 and the 50-day SMA at 0.9007 could indicate a reversal higher. In this case, the next target would be the July 3 high at 0.9051.
Overall, the USD/CHF pair is currently in a corrective phase, with potential for both further decline and a reversal higher. Traders should keep an eye on key levels such as the 200-day SMA and the recent highs for potential trading opportunities.