The USDCHF pair has recently emerged from a consolidation phase, capturing the attention of traders and analysts alike. After a period of range-bound trading, the pair has decisively broken above the 0.9019 resistance level, reigniting its upside move from the 0.8729 mark.
Bullish Breakout and Extension
The recent bullish breakout has propelled the USDCHF pair higher, with the upside move extending to as high as 0.9042. This development has fueled speculation that the pair’s uptrend from 0.8729 could potentially gain further traction.
Initial Support and Upside Targets
As the pair navigates through this bullish phase, traders will be closely monitoring the initial support level at 0.8965. As long as this level holds firm, the upside move could be expected to continue, with the next target area being the 0.9100 level, followed by the psychologically significant 0.9180 mark.
Potential Consolidation and Trend Line Support
On the downside, a breakdown below the 0.8965 support level would indicate that a consolidation phase for the uptrend from 0.8729 is underway. In such a scenario, the pair would likely find support at the rising trend line on the 4-hour chart, a crucial level that has underpinned the broader uptrend.
Traders will be keeping a close eye on the trend line support, as only a decisive break below this level could signal the completion of the uptrend, potentially leading to a significant shift in the pair’s trajectory.
Key Levels to Watch
In this volatile phase, traders will be keeping a close eye on the following key levels:
- 0.8965 (initial support)
- 0.9100 (potential upside target)
- 0.9180 (additional upside target)
- Rising trend line (critical support)
The price action around these levels will be instrumental in determining the pair’s next move and the potential for a continuation of the uptrend, a consolidation phase, or a potential reversal.