USDCHF has recently broken through significant levels and is currently standing at a crucial support level, painting a mixed picture for its future market movement.
Key Breakthrough: Falling Below the Rising Channel
USDCHF has notably broken below the bottommost point of the rising price channel as observed on the 4-hour chart. Now the pair faces a critical support level at 0.8606.
Possible Downside: Breakdown Confirmation and Support Levels
Should there be a breakdown below 0.8606, it would reinforce the conclusion that the upside thrust from 0.8332 has reached completion at 0.8728. Subsequently, the pair would likely find support near the 0.8500 price level.
Potential Rebound Scenario: Support Holding Strong
However, should the 0.8606 support level hold, the decline from 0.8728 could be seen as a consolidation phase for the uptrend that began at 0.8332.
Trigger for Further Upside Movement: Standing Levels
A breakout above the 0.8655 level could ignite another climb to test the 0.8684 resistance. Rising above this level could aim for the next resistive hurdle at 0.8728, whose breach might signal a resurgence of the uptrend.
In summary, USDCHF’s break below the rising channel paints a complicated picture. The critical next steps lie in whether support at 0.8606 holds or breaks, potentially determining whether we see further downside or a new wave of uptrend ensues.