Hello traders! Today USD/CHF currency pair has reached the low at 0.9384. At the same time price has reached the bottom of the descending channel and RSI formed a bullish divergence.
Overall, we could be witnessing the formation of the double bottom which should result in either a trend reversal or a strong wave to the upside. But of course, this is only as long as Daily close remains above the 0.9376 support.
The potential upside target is seen at a 50% Fibonacci retracement level located at 0.9580. In clearly corresponds to the downtrend trendline as well as 200 Exponential Moving Averages. It makes is an extremely strong resistance area in the medium term, and if USD/CHF will manage to break and close above, the long term uptrend might be confirmed.
In regards to the downside. If the current support area will get penetrated with a daily close below 0.9376, the bullish scenario will no longer be valid and the price might either consolidate and produce a strong spike to the downside in order to reached stop-loss levels of the buyers.
Bias: Bullish while above 0.9376
Potential Support Zone: 0.9380 – 0.9400
Potential Targets: 0.9580
Have a profitable trading!