The USDCHF (US Dollar/Swiss Franc) pair has been facing some challenges lately. Let’s break down what’s happening and what it might mean for traders.
Recent Price Action:
- The pair recently attempted to break above a falling trend line on the 4-hour chart.
- Unfortunately for bulls, this attempt failed at 0.8748.
- Since then, we’ve seen a sharp drop, with prices falling as low as 0.8520.
What This Means:
- As long as the price stays below the falling trend line, we’re still in a downtrend that began at 0.9050.
- This suggests we might see further declines in the coming days.
Potential Targets:
- The next support level to watch is around 0.8490.
- If that breaks, keep an eye on 0.8432, which was a previous low and could act as support.
What to Watch:
- The initial resistance is at 0.9600.
- If the price manages to break above this level, we might see it retest the falling trend line resistance on the 4-hour chart.
Remember, always practice proper risk management and stay informed about market conditions before making any trading decisions.