FX.co ★ Potential bounce to 0.8970-0.8980 for USDCHF

USDCHF remains in a bearish trend making lower lows and lower highs. However price has also formed a downward sloping wedge pattern and we observe that the RSI is showing bullish divergence warning signals. So far we have no indication of a bullish reversal of the short-term trend.

Blue lines - bullish RSI divergence

USDCHF has the potential to bounce towards the green downward sloping resistance trend line. Potential target is at 0.8970-0.8980. Short-term resistance is found at 0.8855. A break above this level will be a sign that the bounce is underway. Major bullish signal will be given if price breaks out of the downward sloping wedge pattern.