USD/CHF Daily Analysis
The USD/CHF pair’s intraday bias has turned bearish again following the break of the 0.8850 support level. The downtrend from 1.0146 is expected to aim for the 61.8% projection level of 1.0146 to 0.9058 from 0.9439 at 0.8767, which is near the long-term support level of 0.8756. It is anticipated that strong support will be present at this level and could lead to a rebound, at least on the initial attempt. On the other hand, a break of the 0.8993 resistance level would signal short-term bottoming, bullish convergence in the 4H MACD, and a reversal of the bias towards a stronger rebound.
Looking at the bigger picture, the ongoing decline from the 2022 high of 1.1046 is targeting the 2021 low of 0.8756. However, this fall is still viewed as a leg in the long-term range pattern from the 2016 high of 1.0342. Thus, the downside should be contained by the 0.8756 level to enable a reversal. The sustained break of the 0.9058 resistance turned support will be the first indication of a medium-term bottom. Nonetheless, a decisive break of 0.8756 will carry larger bearish implications.
