US Dollar Pullback Tests Key Support Against Swiss Franc

The USDCHF currency pair has broken below the rising trendline support visible on the daily chart and is now testing the key 0.8997 support level. This area will likely determine the pair’s near-term directional bias.

Key Support to Determine Next Move

As long as the 0.8997 support holds on a closing basis, the current pullback from the 0.9223 high can be viewed as a healthy consolidation within the broader uptrend that originated from the 0.8332 low.If the 0.8997 floor is defended, another rally to retest the 0.9223 resistance could potentially unfold for the USDCHF pair.

Bullish Resumption on Break Above 0.9223

A bullish breakout above the 0.9223 resistance would likely signal that the broader uptrend from 0.8332 has resumed. In this scenario, the next key upside target for the USDCHF would be the 0.9350 area.

Downside Risks on Support Break

On the flip side, a breakdown below the 0.8997 support would likely indicate that the upside move from 0.8332 has completed at the 0.9223 high.In this scenario, the USDCHF would be at risk for a more substantial pullback toward the 0.8900 support zone as the correction plays out.

Key Levels to Watch

For now, the key level to watch is the 0.8997 support. As long as this level holds, the overall technical bias remains tilted to the upside, with the potential for another test of the 0.9223 resistance.

However, a breakdown below 0.8997 would be a significant technical event, likely opening the door for a deeper pullback toward the 0.8900 area.

The USDCHF finds itself at an important technical juncture after breaking below its daily trendline support. The 0.8997 level will determine whether the uptrend resumes or if a more substantial correction unfolds. Traders will want to keep a close eye on this key support in the sessions ahead.