The USD/CHF currency pair has witnessed a significant bearish development, breaking below the rising trend line on the daily chart and subsequently breaching the crucial 0.8997 support level. This breakdown suggests that the recent upside move from the 0.8332 low has likely completed at the 0.9223 high.
With this bearish signal, further declines in the USD/CHF could be on the horizon in the coming days. The next target for the bears is the 0.8890 area, followed by the 0.8750 zone.
However, it’s important to note that the path lower may not be without obstacles. The initial resistance for the USD/CHF is currently situated at the 0.9035 level. If the pair manages to regain strength and break above this level, it could potentially lead to a move towards the next resistance level at 0.9100.
It’s crucial to understand that only a sustained move above the 0.9100 resistance could potentially trigger another rally towards the previous high of 0.9223, potentially negating the bearish outlook.
In summary, the USD/CHF has broken through a critical support level, suggesting that the recent upside move has likely concluded. The pair is now facing potential downside risks, with the 0.8890 and 0.8750 levels serving as the next targets for the bears.
On the upside, traders should closely monitor the 0.9035 and 0.9100 resistance levels, as a break above these levels could potentially lead to a retest of the 0.9223 previous high.
Traders and investors are advised to remain vigilant and adapt their strategies based on the evolving price action in the USD/CHF currency pair.