Daily Forex Analysis – USD/CHF
Analyzing the recent movements of USD/CHF, it appears that the intraday sentiment has shifted to a neutral stance, with the pair showing signs of recovery. Looking closer, a descent below the 0.8956 threshold would prompt a probe into the 0.8890 support zone. A subsequent breach of this level could signal a continuation of the downtrend from the peak of 2022 at 0.9247, targeting the Fibonacci retracement level at 0.8819. Conversely, should the pair climb above 0.9115, it could reignite the recovery originating from 0.8890, setting its sights on the resistance at 0.9247.
From a broader landscape, the overall prognosis for USD/CHF is somewhat convoluted due to a deeper pullback from the 0.9247 high than initially anticipated. Interestingly, the pullback’s momentum stalled upon reaching 0.8890, with no substantial follow-through in selling pressure. A push past the 0.9247 barrier could rekindle assertions of a medium-term foundation forming at 0.8855, potentially shifting the market sentiment to a bullish one. Nevertheless, a firm and sustained move below the critical 61.8% Fibonacci retracement level of the ascent from 0.8555 to 0.9247, located at 0.8819, could suggest that the broader decline from the high of 1.0150 is set to continue, potentially extending down to the 0.8555 nadir.
Analysis Summary
The USD/CHF pair presents a neutral intraday outlook with the potential to test key support at 0.8890. A break above 0.9115 could reverse the trend, while a drop below 0.8819 might signal a resumption of the long-term downtrend. Overall, market sentiment hinges on these pivotal movements.
Key Points
- Neutral intraday bias with a pivot at 0.8956.
- Critical support and resistance levels at 0.8890 and 0.9247, respectively.
- The long-term trend could resume on a break below 0.8819.
