USD/CHF UPDATE AND INTRADAY ANALYSIS
The intraday analysis of USD/CHF indicates a current neutral bias, suggesting a period of stability at the moment. The rebound from the short-term bottom of 0.8829 is anticipated to persist as long as the minor support level of 0.8924 remains intact. To confirm that the ongoing rally is at least a correction of the entire downtrend from 1.0146, it is crucial for the currency pair to maintain sustained trading above the 55-day Exponential Moving Average (EMA), currently positioned at 0.9043. If this condition is met, further upward movement is expected, targeting the 38.2% retracement level between 1.0146 and 0.8819, located at 0.9334. Conversely, a breach of the support level at 0.8926 would result in a retest of the previous low at 0.8826.
Zooming out to the larger perspective, the decline from the 2022 high of 1.1047 is interpreted as a leg within the long-term range pattern established between 1.0341 and the aforementioned high. Consequently, the downside movement should find support around 0.8753, leading to a potential reversal. A sustained breakthrough of the resistance-turned-support level at 0.9056 would serve as the initial indication of a medium-term bottoming process. However, a decisive breach of the 0.8752 support level would carry more substantial bearish implications.
