The USD/CHF pair’s downward movement continues with a persistent intraday bias towards the downside. The current descent, originating from an adjusted level of 0.9247, is anticipated to aim for the 100% projection target of 0.8758. This projection is calculated from the fall from 0.9247 to 0.8890, and extending from a pivot at 0.9115. If the pair surpasses the slightly revised minor resistance level of 0.8902, the intraday bias could shift to neutral, leading to potential consolidations. However, even in a recovery, the overall outlook remains bearish as long as the pair stays below the transformed resistance, now at 0.8956, which was previously a support level.
From a broader perspective, the price movements of USD/CHF since reaching the adjusted level of 0.8555 are interpreted as a component of a corrective pattern following the decline from the 2022 high, now standing at 1.0150. The ongoing fall from 0.9247 is currently viewed as the second phase in this pattern. A further drop is envisaged towards the 61.8% Fibonacci retracement level, now at 0.8819, measured from 0.8555 to 0.9247. A confirmed breach of this level could set the stage for a retest of the 0.8555 low. This scenario remains the more likely outcome, especially while the resistance at 0.9115 continues to hold.
Analysis Summary
The USD/CHF pair is experiencing a continued decline with a focus on the 0.8758 target. A shift above 0.8902 could bring neutrality, but the bearish view persists under 0.8956. In a broader context, a corrective pattern suggests a potential retest of the 0.8555 low.
Key Points
- Persistent decline in USD/CHF targeting 0.8758.
- Minor resistance at 0.8902 could neutralize the intraday bias.
- A broader pattern indicates a potential retest of 0.8555 low.
