Sun, June 16, 2024

USD/CHF Targets 0.9050 Resistance in June 2024

Wibest – CHF Franc: New Swiss franc notes. usd/chf

Quick Look:

  • USD/CHF broke a significant trendline from 2022 highs, indicating the potential for higher prices within a bullish triangular range.
  • Currently experiencing an A-B-C corrective decline, testing support at 0.8900; bullish resumption needs a rise above 0.9000.
  • From the 0.8332 bottom, corrective pattern against the downtrend from the 2022 high; a break above 0.9243 indicates a bullish reversal.
The USD/CHF currency pair has been on an upward trajectory in 2024. Thereby gaining momentum after breaching a significant trendline from the highs in 2022. This breakout indicates the potential for higher prices within a substantial triangular range. It suggests a bullish outlook for the currency pair.

USD/CHF Tests 0.8900 Support Amid Correction

Currently, USD/CHF is experiencing a corrective setback of a higher degree following a five-wave rally and the breach of the trendline above. The market is tracking an A-B-C corrective decline, with wave C currently testing the initial support zone around 0.8900. This area may provide a stabilisation point for prices. However, the price must sharply turn above the 0.9000 level for a bullish resumption and move out of the current channel. Should the corrective wave C extend deeper, support levels are anticipated around 0.8700 to 0.8600. Overall, there is an expectation of CHF weakness against the USD and other major currencies throughout the year.

USD/CHF exhibited minimal movement yesterday, fluctuating around the 0.8970 mark. The outlook remains neutral as the market awaits a decisive move. A breach of the 0.9014 resistance or a break below the 0.8945 support is required to determine the next directional move. Technical indicators currently provide mixed signals, reinforcing this neutral stance.

Swiss Franc to US Dollar Trading Range

  • Support: 0.8900
  • Resistance: 0.9050

The intraday bias remains neutral with an unchanged outlook. On the upside, a firm break of the 0.8987 resistance would suggest that the correction from 0.9223 has been completed. After that setting sights on the 0.9157/9223 resistance zone. Conversely, a sustained break below the 0.8883 Fibonacci level would imply more significant bearish implications, potentially leading to a deeper decline.

USD/CHF Faces Bearish Pressure Below 0.9243

From a broader perspective, the price actions starting from the medium-term bottom of 0.8332 appear to form a corrective pattern against the downtrend from the 2022 high of 1.0146. The rejection near the 0.9243 resistance and the break of the 38.2% retracement level of 0.8332 to 0.9223 at 0.8883 reinforce a medium-term bearish outlook. However, a decisive break above the 0.9243 resistance would indicate a trend reversal. Therefore shifting the medium-term outlook to bullish with potential targets back towards the 1.0146 highs.

The USD/CHF pair navigates a complex corrective phase within a broader, bullish context. Key levels to watch include support at 0.8900 and resistance at 0.9050. The market remains neutral, awaiting a decisive move to clarify the next direction. Medium-term, the outlook hinges on critical levels, with a break above 0.9243 signalling a bullish reversal, while continued support at lower levels would underscore a bearish continuation.

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