The USD/CHF pair has shown a strong bounce from 0.8819, reaching as high as 0.8923. This upward movement is now facing resistance from the falling trend line on the 4-hour chart. Let’s explore the potential scenarios and key levels to watch.
Bullish Scenario
If the USD/CHF can break above the falling trend line, it could trigger further upside movement. Key resistance levels to monitor include:
- Next Resistance: 0.8990
- Above 0.8990: Targeting 0.9050
Bearish Scenario
On the downside, initial support is at 0.8870. A breakdown below this level could lead to further declines. Key support levels to watch are:
- Initial Support: 0.8870
- Next Support: 0.8819
- Below 0.8819: Targeting 0.8780
Key Levels to Watch
- Resistance Levels:
- Initial resistance: 0.8923 (falling trend line)
- Next resistance: 0.8990
- Major resistance: 0.9050
- Support Levels:
- Initial support: 0.8870
- Next support: 0.8819
- Major support: 0.8780
Conclusion
The USD/CHF pair is at a critical juncture, testing the falling trend line resistance. A breakout above this trend line could signal further gains, while a failure to hold above the initial support at 0.8870 could lead to a retest of lower levels. Traders should keep a close eye on these key levels for potential trading opportunities.
Remember to use proper risk management techniques and consider multiple timeframes when making trading decisions based on this analysis.