Photo by Claudio Schwarz on Unsplash

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
 

1. Support Levels:
   • Immediate support: 0.8776
   • Next target: 0.8730 area
2. 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
 

1. 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
2. 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.

More By This Author: