The USD/CHF setup is very constructive with the formation of a potential matrial base on top of the historical low at 0,8275 but as long as the pair remains stuck below its daily descending trendline and strong resistance at 0,8550, the pressure will remain on the downside.
USD/CHF: daily chart
So a break above 0,8550 is required to really consider a bullish scenario. We think that level might be tested soon but we don’t want to rush into things as the market has proven to sell any rally on this pair for quite some time now.
A break above this resistance though might signify a shift in the trend with a lot of potential to the upside.
Inversely, a break below 0,83 would put pressure on the pair with of risk of continuation to the downside below the historical low.