Technical Analysis of USD/CHF: Rate Reaches Key Resistance Level
As seen on the USD/CHF chart, the pair has been moving within a descending channel (highlighted in red) since May.
In September, price action confirmed that the 0.84000 level, near the lower channel boundary, serves as strong supportafter several unsuccessful attempts to break below it, the pair rebounded from point A to point B, rising by over 3% to the current level around 0.86750.
The U.S. dollars recent strength has been supported by:
Expectations of a Trump victory in the upcoming presidential election,
Rising yields on long-term U.S. Treasury bonds.
However, technical analysis of the USD/CHF chart suggests that the pair faces significant pressure at this level:
From the proximity to the upper boundary of the descending channel,
From the 0.8725 resistance level, tested in August (indicated by an arrow),
From the psychological level of 0.87000, which has twice deflected price downward this week.
Further supporting this outlook, a rounding top pattern (illustrated by a black arrow) appears to be forming, potentially signaling a bearish reversal.
Given these factors, a stronger bearish presence may emerge, with USD/CHF likely to test the 0.86000 level, which recently served as resistance but was subsequently broken earlier this month.
Read more: https://fxopen.com/blog/en/oa-technical-analysis-of-usd-chf-rate-reaches-key-resistance-level/
Text source: Forex Trading Blog
