USDCHF has displayed bullish momentum, breaking above the key resistance level of 0.8728. This breakout suggests a potential resumption of the uptrend that began at 0.8332. Let’s delve into the technical details to understand what this means for the pair’s future direction.
Bullish Breakout and Potential Targets
- Resistance Conquered: The decisive move above 0.8728 signifies a potential bullish continuation.
- Further Upside: After a minor consolidation phase, further upward movement can be expected, with the next target potentially reaching the 0.8800 area.
Support Levels to Watch
- Initial Safety Net: The initial support level to monitor in case of a pullback is at 0.8670.
- Breakdown Scenario: A decline below this level could lead to a retracement towards the next support zone around 0.8640.
- Further Downturn: If the selling pressure persists and breaks below 0.8640, another dip towards the 0.8550 support level could occur.
The breakout above 0.8728 paints a bullish picture for USDCHF in the near term. However, consolidation is likely before the potential rise towards 0.8800. The price action around the support levels will be crucial to confirm the uptrend’s strength. A breakdown below 0.8640 could indicate a pause or even a reversal of the bullish momentum.