USD/CHF Daily Outlook

Daily Pivots: (S1) 0.8920; (P) 0.8943; (R1) 0.8969; More…

The USD/CHF currency pair has shown a notable recovery recently; however, it is still trading under the significant resistance level at 0.9053. As it stands, the intraday bias remains neutral, suggesting that there may be both bullish and bearish movements in play. The correction from the 0.9200 peak could extend downward further, depending on market developments.

It is important to recognize that strong support is anticipated at the 38.2% retracement level of the movement from 0.8374 to 0.9200, which is positioned at 0.8884. This level is expected to act as a significant turning point, potentially leading to a larger upward movement if the price manages to bounce back from this support zone. Conversely, if the price exceeds the 0.9053 level, this could trigger a retest of the 0.9200 resistance, indicating that bullish sentiment is building.

However, a sustained drop below the 0.8884 level could signify a reversal in the market's sentiment, pushing the market towards the next major retracement target of 61.8% at 0.8690 instead.

Looking at the broader market scenario, a decisive break above the 0.9223 resistance level would suggest that the long-term downtrend originating from the 1.0342 high in 2017 has come to an end, with the market experiencing a three-wave decline that found support at 0.8332 in 2023. Such a breakthrough would likely shift the outlook to bullish, setting the stage for the next resistance at 1.0146.

On the other hand, if the price is rejected at the 0.9223 mark, the medium-term bearish sentiment may persist, leading to further declines past the 0.8332 mark in the future.

Forex, Trading, Outlook