Ella 
Entering Wednesday’s European session, USD/CHF hovered around 0.8800, as the rebound from the 100 SMA the day before yesterday faded. The pair’s moves reflected market caution ahead of flash U.S. August manufacturing PMI data.
Aside from a pullback towards the 100 SMA around 0.8780, a steady RSI and the presence of a 13-day ascending triangle pattern (currently between 0.8770 and 0.8830) also keep USD/CHF bears hopeful.
If there is a clear break below the 0.8770 mark, the bears of the currency pair may target the 200SMA support at 0.8720, and then point to the theoretical target of the triangle around 0.8650.
Meanwhile, a rally in USD/CHF must break above the top line of the aforementioned triangle around 0.8830 to convince intraday bulls.
Even so, the 61.8% retracement of the pair’s decline between late June and July, near 0.8840, will serve as the last line of defense for the bears.
Overall, USD/CHF remains bearish barring a break above 0.8840. However, a weaker U.S. PMI and dovish concerns from the Fed would exacerbate its decline.
