Since April 2019, USD/CHF has been trending down, without any signs of a trend reversal. And still, price continues to produce lower lows and lower highs, suggesting the validity of the downtrend. However, the most recent price action shows that the 161.8% Fibonacci retracement level, applied to the previous upside correction, got rejected right at 0.8850. It was a very precise bounce for two consecutive days. Then price attempted to break below but only managed to produce few spikes.
This goes to show that 0.8850 support is being defended by the buyers, and as long as the price remains above the recently produced low at 0.8820, the correctional move up should be expected. It might result in the price moving towards the 0.9111 resistance, which corresponds to the average-price downtrend trendline. At the same time, this resistance level is confirmed by two Fibonacci indicators. Both of the Fibs were applied to the previous 2 upside correction, and they show that 38.2% and 61.8% retracement levels are exactly at the same price, which is 0.9111.
Therefore, as long as the current low holds, the probability will be shifting in favor of the buyers. Overall, there is over 200 pip upside potential, where price could be meeting the trendline, Fibonacci resistance as well as the 200 Exponential Moving Average.
On the downside, break and close below the 0.8820, will invalidate the bullish forecast, and USD/CHF should be expected to continue trending down. The next key support might be the 261.8% Fibs at 0.8637
Key support levels: 0.8850, 0.8637
Key resistance levels: 0.8900, 0.9111
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Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice
This goes to show that 0.8850 support is being defended by the buyers, and as long as the price remains above the recently produced low at 0.8820, the correctional move up should be expected. It might result in the price moving towards the 0.9111 resistance, which corresponds to the average-price downtrend trendline. At the same time, this resistance level is confirmed by two Fibonacci indicators. Both of the Fibs were applied to the previous 2 upside correction, and they show that 38.2% and 61.8% retracement levels are exactly at the same price, which is 0.9111.
Therefore, as long as the current low holds, the probability will be shifting in favor of the buyers. Overall, there is over 200 pip upside potential, where price could be meeting the trendline, Fibonacci resistance as well as the 200 Exponential Moving Average.
On the downside, break and close below the 0.8820, will invalidate the bullish forecast, and USD/CHF should be expected to continue trending down. The next key support might be the 261.8% Fibs at 0.8637
Key support levels: 0.8850, 0.8637
Key resistance levels: 0.8900, 0.9111
Thanks for your support! If you liked this analysis, please support our profile with a 👍 and follow us to get a new daily analysis.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice