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USD/CHF Analysis – Strong Buy/Sell Signal Today By Guriforex

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Aryan

1 day ago

USD/JPY Analysis – Strong Buy/Sell Signal Today By Guriforex

Hello traders, A new forex trading pair Signal just dropped. This Trading pair is USD/CHF. Let’s dive into the analysis without delay.

USD/CHF Trading Signal: Bearish Flag Pattern in Play – Key Levels to Watch

The USD/CHF pair is currently exhibiting a clear downtrend, with price action forming a bearish flag pattern – a classic continuation signal that often precedes further declines. However, the 50-day Moving Average (MA) is providing temporary support, creating an interesting tension between short-term rebounds and the broader bearish momentum.

USD/CHF Key Technical Observations:

1️⃣ Bearish Flag Formation: The price is consolidating within a downward-sloping channel, suggesting sellers are gathering strength before the next leg down.
2️⃣ 50-MA Support: While the MA is propping up prices temporarily, the overall trend remains decisively bearish.
3️⃣ Critical Levels:

  • Resistance: 0.8010 (upper flag boundary & previous swing high)
  • Support: 0.7940 (lower flag boundary), followed by 0.7880 (strong historical support).

Trade Idea: Two Potential Scenarios

USD/CHF Scenario 1: Bullish Rebound (Counter-Trend Opportunity)

If USD/CHF bounces off the 50-MA and lower flag trendline, traders could consider a short-term long position with:

  • Entry: Confirmed rebound near 0.7940 (e.g., bullish candlestick patterns like hammer/engulfing).
  • Target: 0.8010 (take profit at flag resistance).
  • Stop Loss: Below 0.7920 to limit risk.

Rationale: This play exploits a potential retracement in the downtrend, but requires tight risk management.

Scenario 2: USD/CHF Bearish Breakdown (Trend Continuation)

close below 0.7940 (especially on a 4H/1D candle) would confirm the flag’s downside breakout, opening the door for:

  • Entry: Sell on retest of 0.7940 as new resistance.
  • Target: 0.7880 (next support zone).
  • Stop Loss: Above 0.7965 to avoid false breakdowns.

Rationale: This aligns with the dominant bearish trend and offers higher probability.

Why This Matters Now

  • Swiss Franc Strength: CHF is benefiting from safe-haven flows amid global uncertainty.
  • Dollar Weakness: The USD is struggling against CHF due to [insert recent Fed/economic data context if applicable].

Call to Action

Which scenario do you favor?

  • 🙋♂️ “Long on rebound!” if you’re betting on a correction.
  • 🐻 “Short the breakdown!” if you’re riding the bear trend.

Drop your targets and charts in the comments! Let’s crowdsource the best setups.

XM

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