Image Source: PixabayThe USD/CHF pair has shown a strong bounce from 0.8819, reaching as high as 0.8923. This upward movement is now facing resistance from the falling trend line on the 4-hour chart. Let’s explore the potential scenarios and key levels to watch.
Bullish Scenario
If the USD/CHF can break above the falling trend line, it could trigger further upside movement. Key resistance levels to monitor include:
Bearish Scenario
On the downside, initial support is at 0.8870. A breakdown below this level could lead to further declines. Key support levels to watch are:
Key Levels to Watch
- Initial resistance: 0.8923 (falling trend line)
- Next resistance: 0.8990
- Major resistance: 0.9050
- Initial support: 0.8870
- Next support: 0.8819
- Major support: 0.8780
Conclusion
The USD/CHF pair is at a critical juncture, testing the falling trend line resistance. A breakout above this trend line could signal further gains, while a failure to hold above the initial support at 0.8870 could lead to a retest of lower levels. Traders should keep a close eye on these key levels for potential trading opportunities.Remember to use proper risk management techniques and consider multiple timeframes when making trading decisions based on this analysis.More By This Author:USD/JPY Technical Analysis: Downtrend Continues Within Falling Channel
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