The USD/CHF pair continues to show an upward bias in trading as the rise from 0.8374 is ongoing. If there is a sustained break above the 38.2% retracement level of 0.9223 to 0.8374 at 0.8698, it could indicate that the decline from 0.9223 has ended after finding support at 0.8332. This could lead to a further rally towards the 61.8% retracement level at 0.8899. However, if the price falls below the minor support level of 0.8605, the intraday bias may turn neutral once again.
Looking at the bigger picture, the price movements from the 2023 low of 0.8332 are currently viewed as a medium-term corrective pattern, with the drop from 0.9223 considered as the second leg of this correction. There is a possibility of strong support coming in around the 0.8332 level, leading to a rebound. Nonetheless, the overall outlook remains bearish as long as the resistance at 0.9243 remains intact. A decisive break below 0.8332, on the other hand, could signal a continuation of the broader downtrend from the 2022 high of 1.0146.
It is important for traders to keep a close eye on these key levels and price movements to make informed trading decisions. Market sentiment and external factors can also play a significant role in shaping the direction of the USD/CHF pair. By staying updated on the latest developments and conducting thorough analysis, traders can position themselves strategically in the forex market.
