The USD/CHF pair has recently shown some interesting price action that suggests a continuation of its downward trend. Let’s break down the key levels and potential scenarios for traders to watch.

Recent Developments

• The pair failed to break above the falling trend line on the 4-hour chart
• A sharp drop from 0.8923 indicates that the downtrend from 0.9050 remains intact
• Further decline is expected in the coming days
   

Key Levels to Watch

1. Support Levels:
   • Current support: 0.8819
   • Next target: 0.8780
   • Further support: 0.8730
2. Resistance Levels:
   • Initial resistance: 0.8865
   • Trend line resistance
   • Higher resistance: 0.8990
   • Major resistance: 0.9050

Potential Scenarios

1. Bearish Scenario:
   • If USD/CHF breaks below 0.8819, expect a move towards 0.8780
   • A break below 0.8780 could lead to further decline towards 0.8730
2. Bullish Scenario:
   • A break above 0.8865 could trigger a retest of the falling trend line
   • If the pair breaks above the trend line, it may move towards 0.8990
   • A break above 0.8990 could lead to a test of the 0.9050 resistance

Conclusion

The current technical setup suggests that USD/CHF is likely to continue its downward trend. Traders should keep a close eye on the key support level at 0.8819 for potential short entries. However, be cautious of any breaks above 0.8865, as this could signal a potential trend reversal.

Remember to always use proper risk management techniques and consider multiple timeframes when making trading decisions based on this analysis.

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