Daily Forex Analysis – USD/CHF
The short-term bias for USD/CHF is tilted towards a bearish scenario with an immediate target at the 0.8890 support level. A breach of this point will likely reignite the downturn that began at 0.9247, aiming next for the 0.8819 Fibonacci support zone. The pressure remains to the downside as long as the 0.9115 resistance threshold stands firm, even if a temporary recovery materializes.
Analyzing the broader landscape, the outlook for USD/CHF is complicated due to a deeper pullback from the 0.9247 level than initially anticipated. Notably, the anticipated follow-through selling pressure after the pair touched the 0.8890 support was absent. Should there be a rally past the 0.9247 resistance, it would suggest a potential medium-term bottom formation at 0.8855, pivoting the perspective to a bullish one. Conversely, if the pair consistently trades below the critical 61.8% retracement mark situated at 0.8819, which delineates the larger decline from the peak of 1.0150, it would strengthen the argument for a continuation of the downtrend towards the 0.8555 low.
In essence, the USD/CHF pair finds itself at a crossroads, where the direction of its next substantial move is hinged on key resistance and support levels.
Analysis Summary
The USD/CHF faces a bearish short-term bias targeting the 0.8890 support, with a drop below this possibly signalling a continued decline. The long-term outlook remains uncertain, balanced between a potential medium-term bottom reversal and a further downtrend continuation based on critical Fibonacci levels.
Key Bullet Points
- Immediate bearish target at 0.8890 support for USD/CHF.
- A break above 0.9247 resistance could indicate a bullish reversal.
- Sustained trading below 0.8819 may renew the downtrend.
