The USDCHF currency pair has broken below the rising trendline support visible on the daily chart, followed by a breakdown below the key 0.8997 support level. This technical breakdown suggests that the recent upside move from the 0.8332 low has likely completed at the 0.9223 high.
Further Downside Risks Emerge
Following the break of the 0.8997 support, the next key downside targets for the USDCHF are located at the 0.8890 and 0.8750 areas.The path of least resistance for the pair appears to be further losses in the coming days as the bearish momentum builds.
Resistance Levels to Watch
In the near-term, the first level of resistance to watch is the 0.9035 area. A break back above this level could potentially see the USDCHF retrace toward the 0.9100 resistance zone.However, only a move above the 0.9100 barrier would likely trigger another rally toward a retest of the 0.9223 previous high.
Downside Momentum Building
For now, the technical bias has shifted to a more bearish outlook following the breakdown below trendline support and the 0.8997 level. The path of least resistance appears to be further losses toward the 0.8890 and 0.8750 targets.Only a move back above the 0.9035 and 0.9100 resistance levels would ease the downside pressure and shift the bias back to a more neutral stance.
Key Levels to Watch
The key levels to watch in the USDCHF are the 0.8890 and 0.8750 downside targets, along with the 0.9035 and 0.9100 resistance barriers.
As long as the pair remains below 0.9035, the overall technical bias will remain bearish, with the potential for a more significant decline toward the 0.8750 area if the 0.8890 support is taken out.
The USDCHF has shifted to a more bearish technical outlook after the recent breakdown below key support levels. Traders will want to closely monitor the price action around the key support and resistance levels highlighted to determine if the downside momentum will continue to build or if a more significant rebound could unfold.