The USD/CHF pair has recently shown some price action, suggesting that the overall downtrend remains intact. Let’s break down the key levels and potential scenarios for traders to watch.
Recent Developments
- USD/CHF failed to break above the resistance of the falling trend line on the 4-hour chart
- The pair pulled back from 0.8875, indicating that the downtrend from 0.9050 is still in play
- The current bounce from 0.8776 appears to be a consolidation within the larger downtrend
Key Levels to Watch
- Support Levels:
- Immediate support: 0.8776
- Next target: 0.8730 area
- Resistance Levels:
- Initial resistance: 0.8875
- Key resistance: Falling trend line on the 4-hour chart
- Higher resistance: 0.8923
- Major resistance: 0.9000 area
Potential Scenarios
- Bearish Scenario:
- As long as the price remains below the falling trend line, expect further declines
- A breakdown below 0.8776 could trigger a move towards the 0.8730 area
- Bullish Scenario:
- A break above 0.8875 and the falling trend line would indicate a potential trend reversal
- If this occurs, the next targets would be 0.8923, followed by the 0.9000 area
Conclusion
The USD/CHF pair remains in a downtrend, with the recent bounce likely being a consolidation phase. Traders should keep a close eye on the key support at 0.8776 and the resistance at 0.8875 and the falling trend line for potential trading opportunities.
Remember to always use proper risk management techniques and consider multiple timeframes when making trading decisions based on this analysis.