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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:

1. Next Resistance: 0.8990
2. 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:

1. Initial Support: 0.8870
2. Next Support: 0.8819
3. 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.

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