USD/CHF Price Analysis: Bears move strongly into a key area on the charts

• USD/CHF bears are taking control of what could be a key support area.
• The daily chart is showing signs of a bearish continuation. 

The US Dollar erased gains on Wednesday after Federal Reserve Chair Jerome Powell said the central bank's fight to lower inflation "has a long way to go." This has seen a strong bid in the CHF and exposes further downside to follow as the charts below will illustrate:

USD/CHF weekly chart

The weekly chart is showing the price completing a return to the neckline of the W-formation in what is a 61.8% Fibonacci retracement, so far. There could be more downside to come as per the daily chart:

USD/CHF daily charts

Zoomed in, we can see that the price is on the verge of a downside extension following a 50% mean reversion of the prior bearish impulse. The bears need to stay committed at this juncture or face pressures to the trendline resistance in the coming days.