Looking for a way to jump on the anti-dollar train?
USD/CHF is fast approaching a key trend resistance zone on the 4-hour time frame.
Check it!
USD/CHF 4-hour Forex Chart by TradingView
USD/CHF has been stuck in a downtrend for over a month, with traders backing the franc as global trade jitters ease and U.S. debt and Fed rate cut talks heat up.
The pair did bounce from around .8050 after a spike in Middle East tensions took some shine off the franc’s safe haven status.
But now USD/CHF is creeping back toward a key resistance zone.
If this bounce is just a breather, we might be looking at a classic “sell the rally” setup.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the U.S. dollar and the Swiss franc, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
USD/CHF is heading toward the .8160 to .8200 zone, which lines up with a trend line resistance that’s been holding since mid-May. This time around, it’s also hanging out near the 61.8% Fib of last week’s drop and not too far off the 100 SMA on the 4-hour chart.
If bears show up and defend the zone, USD/CHF could slide right back to its .8050 lows, or maybe even print fresh June lows if the downtrend picks up steam.
But, if bulls punch through the trend line and clear the .8200 mark, the pair might extend its bounce toward the .8250 former inflection point or even the .8300 major area of interest.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
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