Daily Forex Analysis- USD/CHF
The current trend in the USD/CHF currency pair is leaning towards a downward movement. A decisive drop below the support level of 0.8890 could signal a continuation of the decline from the 0.9247 high. The anticipated target for this downward trajectory is the 100% projection level of 0.8758, derived from the decline from 0.9247 to 0.8890, starting at 0.9115. Conversely, if the pair surpasses the minor resistance at 0.8929, it would neutralize the immediate downward bias. However, any recovery is expected to be capped well below the resistance of 0.9055, potentially leading to a subsequent fall.
In a broader context, the outlook for USD/CHF is somewhat ambiguous due to a deeper-than-anticipated pullback from the 0.9247 high. Although the pair reached 0.8890, it did not experience significant follow-through selling. A break above the 0.9247 resistance would suggest a medium-term bottom formation at 0.8855, shifting the outlook to bullish. On the other hand, a sustained break below the 61.8% retracement level of 0.8819 (0.8551 to 0.9247) would indicate that a more significant decline from the 1.0150 high might resume, potentially reaching the 0.8555 low.
Analysis Summary
The USD/CHF pair faces a downward bias, with a crucial support level at 0.8890. Breaking this level could lead to a target of 0.8758. The long-term perspective remains mixed, with key resistance at 0.9247 and support at 0.8819 playing pivotal roles in determining the trend.
Key Points
- Crucial support at 0.8890 for downward continuation.
- Resistance at 0.9247 could signal a bullish reversal.
- The long-term trend hinges on the 0.8819 support level.
