USD/CHF Daily Analysis
The USD/CHF outlook remains unchanged as sideways trading persists. A decisive break of the 0.9001 resistance level should confirm a short-term bottoming at 0.8850. In this scenario, the intraday bias will shift to the upside towards the 55-day EMA, which is currently at 0.9094. A sustained break above that level will be a strong sign of a bullish reversal. On the downside, a break of 0.8850 will resume the larger fall from 1.0146 towards the 61.8% projection of the move from 1.0146 to 0.9058 from 0.9439 at 0.8767, which is close to the long-term support level at 0.8756. A strong support is expected at that level to bring a rebound, at least on the first attempt.
Looking at the bigger picture, the fall from the 2022 high of 1.1046 is in progress towards the 2021 low of 0.8756. However, overall, this fall is still seen as a leg in the long-term range pattern from the 2016 high of 1.0342. Therefore, the downside should be contained by the support level at 0.8756 to bring about a reversal. A sustained break of the support turned resistance level at 0.9058 will be the first sign of a medium-term bottoming. However, a decisive break of 0.8756 will carry larger bearish implications.
