USD/CHF has struggled to break above the falling trend line on the 4-hour chart and has sharply declined from 0.8923. This indicates that the pair remains in a downtrend from the 0.9050 level. Further declines are expected in the coming days, with the next target around the 0.8780 area.
Key Support and Resistance Levels
- Current Support:
- The pair is currently testing the support level at 0.8819.
- A breakdown below this level could push the price down to the 0.8780 support, and potentially further to the 0.8730 area.
- Current Resistance:
- Initial resistance is found at 0.8865.
- Only a break above this level could trigger another rise, allowing a retest of the falling trend line’s resistance.
Potential Scenarios
- Bearish Continuation:
- If the price breaks below the 0.8819 support level, the downtrend is likely to continue, with targets at 0.8780 and 0.8730.
- Bullish Reversal:
- If the price breaks above the 0.8865 resistance level, it may rise to retest the falling trend line.
- A breakout above the falling trend line could lead to further upside, with the next resistance at 0.8990.
- Above 0.8990, the final target would be the 0.9050 resistance level.
Conclusion
USD/CHF is in a clear downtrend, but traders should watch key support and resistance levels for potential breakout or continuation scenarios. Monitoring the 0.8819 support and 0.8865 resistance levels will be crucial for anticipating the pair’s next moves.