Hello traders! USD/CHF continues to trade within the descending channel suggesting the validity of the downtrend. Although there was already a bounce off the bottom of the lower trendline of the descending channel. Right now pair has reached and rejected 88.6% Fibonacci retracement level, which is the key support at 0.9026.
As long as 4h close remains above this support level, USD/CHF might initiate a correctional move to the upside to test 0.9187 resistance. This resistance is confirmed by two Fibonacci retracement levels, 127.2% and 23.6% as per the chart below. The upside target also corresponds to the 200 Simple Moving Averages, while the price is likely to test it.
In regards to the downside, the selling pressure is still very high. Therefore, break and close below 0.9026, can result in a continuation of the uptrend, and USD/CHF could be moving towards the bottom of the channel once again.
All-in-all, it seems that USD/CHF is currently trading at a very important price level and soon we might find out whether profitability is in favor of a correctional move up or a continuation of a downtrend.
Bias: Slightly bullish as long as 4h close above 0.9026
Potential Support Zone: 0.9025 – 0.9035
Potential Targets: 0.9187
Have a profitable trading!