FX.co ★ USDCHF near important resistance

USDCHF remains in a bearish trend since 2019. Price continues making lower lows and lower highs. The last few months price has formed a downward sloping wedge pattern. In previous posts when price was near 0.88 we noted the high probability of a bounce towards the upper wedge boundary close to 0.89-0.8950.

Green line -resistance

USDCHF is approaching the green resistance trend line. The RSI has been diverging for some time providing a warning to bears. Resistance is key in the area of 0.89-0.8950. Bulls need to be very cautious. In order to see a break out and a short-term trend reversal, bulls will need to recapture 0.8950 and stay above it. A rejection at 0.89-0.8950 will open the way for a new lower low towards 0.87.