USD/CHF is testing a major inflection point!
Will enough bears appear at the level to extend the USD/CHF downtrend?
Let’s take a closer look at the daily chart of the pair:
USD/CHF daily forex chart Planned by TV
As you can see, USD/CHF has been making lower highs and lower lows since early November when the pair peaked at the 1.0150 region.
It may be the same for the US dollar, which fell to the 0.825 region before retreating to the 0.9000-0.9050 region.
How low can USD/CHF fall?
USD bears have a chance to jump at the 0.9000 area which lines up with the support level from February and the 38.2% Fibonacci retracement of the 2023 bearish swing.
Oh, did I mention that the current USD/CHF levels are also not very far from the top of the descending channel and the daily 100 SMA?
A short trade at current levels or the first signs of bearish momentum could make for a good risk ratio especially if USD/CHF hits new 2023 lows in the next two weeks.
Do you want to buy the US dollar against the Swiss franc instead?
You may want to wait for USD/CHF to clearly breach the descending channel and then target areas of interest like the 200 SMA or the key psychological handle 0.9200.
No matter what bias you end up with in trading, make sure you manage your risk and stick to your trading plan like white on rice!
