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The rally in USD/CHF from the previous week has taken the pair to a key technical level resistance level this week.
Can the Bulls maintain their level? Paid?
Or is USD/CHF ready to extend the long-term trend?
USD/CHF Forex 4 Hours Chart by TradingView
As you can see, the USD/CHF pair made its highest and lowest levels since the beginning of May when the pair hit resistance at the 0.9200 psychological zone.
The downward trend pushed the pair to lows of 0.8840 last week, however A surprise cut in interest rates by the Swiss National Bank It encouraged some selling of the Swiss franc. It also didn’t hurt US dollar bulls when a round or risk aversion hit the markets and increased demand for the US dollar.
Remember that directional biases and volatility conditions in market prices are usually driven by fundamentals. If you haven’t done your financial homework on the US dollar and Swiss franc yet, it’s time to check out Economic calendar and stay informed Daily essential news!
The USD/CHF pair is now trading above the 0.8950 psychological level, which is not too far from the R1 fulcrum line (0.8982), the 200 simple moving average on the 4-hour chart, and the top of the downtrend line. Descending channel This has been around since the downtrend started.
Are we looking at a pullback opportunity for USD/CHF bears?
The appearance of bearish candles or flat trading below the R1 pivot point line opens the possibility of a decline that could take the USD/CHF pair back to the psychological level of 0.8900. If there is technical and fundamental momentum behind it, USD/CHF could fall to the lows of 0.8840 before extending its downtrend!
But if the pro-USD and anti-CHF trend continues in the next few days, USD/CHF could extend its uptrend instead.
Pay attention to bullish candles or continuation trading above the descending channel and R1 pivot point areas as it can lead to an uptrend. go ahead For USD/CHF.
what do you think? How will the USD/CHF pair trade in the next few days?
