Photo by Claudio Schwarz on UnsplashUSD/CHF has extended its bounce from 0.8374 to a high of 0.8532, but it is now facing resistance from the falling trend line on the 4-hour chart.
Downside Scenario:
- As long as the trend line resistance holds, the current bounce could be seen as a consolidation within the larger downtrend from the 0.9050 high on July 3.
- Another decline is possible, with a potential target around 0.8300 after consolidation.
- Initial support is at 0.8480.
- A breakdown below this level could push the price down to the next support at 0.8430.
- Further decline could target the previous low at 0.8374, followed by 0.8300.
Upside Potential:
- A breakout above the trend line resistance would signal that the downtrend from 0.9050 has likely ended at 0.8374.
- In this case, the next targets would be the 0.8630 area, followed by 0.8730.
Conclusion
USD/CHF’s bounce is facing key resistance at the falling trend line, and its next move depends on whether it breaks above or below key support and resistance levels. A break below 0.8480 could signal further downside, while a breakout above the trend line may lead to a rally toward 0.8630 and beyond. Traders should closely monitor these critical levels for potential shifts in momentum.More By This Author:EUR/USD Breaks Key Support: Further Decline ExpectedEUR/USD: Downtrend Extends With Key Resistance In FocusEUR/USD: Continued Downside With Key Support Levels In Focus
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