USD/CHF is forming a long term double bottom. Can buyers win the battle?

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Updated: 29 July 2020

Hello traders! Yet again I would like to emphasize the potential weakness of the Swiss Franc, but this time in relation to the US Dollar. Back on March 8, USD/CHF bottomed out while hitting 0.9182 low. After over 4 months, the price has returned to this level, and today pair is trading extremely close to the 0.9182 previously established support.

Looking from another perspective, USD/CHF has reached the bottom of the descending channel while the RSI oscillator formed a bullish divergence. All the above-mentioned facts are in favor of the potential correction wave to the upside or even a long term trend reversal.

However, price might produce spikes below the 0.9140 support and it will be important that the daily close remains above this price. Because if there will be a break below, USD/CHF downside strength might increase once again.

But as long as support is respected, USD/CHF should be able to test one of the resistance areas. The first one is the middle trendline oft he descending channel and then 0.9376 area. And final resistance is seen at 0.9500 psychological level which corresponds to the upper trendline of the descending channel.

Bias: Bullish while above 0.9140

Potential Suport Zone: 0.9140- 0.9180

Potential Targets: 0.9376, 0.9505

Have a profitable trading!