FX.co ★ Technical analysis of USD/CHF for January 08, 2021

Overview :

The USD/CHF pair is trading downtrend in the longest term between 0.8923 and 0.8600.

Immediate support is seen around 0.8780. Besides, a clear break below that area could lead the price to the neutral zone in the nearest term testing 0.8700 or lower around 0.8600 in order to form a new double bottom on the four-hour chart.

Today, we expect the USD/CHF pair is keeping its bearish momentum bottomed at 0.8853. The bias remains bearish in the nearest term testing 0.8780.

Immediate resistance is seen around 0.8923. The daily pivot point also stands at 0.8900; for that the level of 0.8900 will act as a minor resistance in coming hours. If the trend is not able to break that area, it could lead the price to the bearish zone in the short run testing 0.8700.

Moreover, any downside pullback from the price of 0.8900 now is normal, because on the whole we remain bearish at present.

Accordingly, in large time frames the trend is still bearish as long as the level of 0.8923 is not broken. Thereupon, it would be wise to sell below the level of at 0.8923 with the primary target at 0.8780. Then, the USD/CHF pair will continue towards the second target at 0.8700 (a new target is around 0.8700).

On the downside, a clear break at the level of 0.8700 could trigger further bearish pressure testing 0.8600, which represents the major support in coming two weeks.

On the one-hour chart :

The trend is still bearish as long as the level of 0.8961 is not broken. The level of 0.8961 has been rejected several times confirming the validity of a bearish market today.

Resistance is seen at 0.8961. The market is still indicating a strong bearish trend from the spot of 0.8961. It would be wise to sell below the level of at 0.8961 with the primary target at 0.8780, which represent the ratio of 23.6% Fibonacci.

As a result, it is gainful to sell below this price (0.8961) with targets at 0.8760 and 0.8700. We expect a new range below the area of 0.8961 towards the daily support of 0.8700. The bias remains bearish in the nearest term testing 0.8700 and 0.8600 later. Consequently, the USD/CHF pair will probably be moved between the levels of 0.8700 and 0.8600.

However, stop loss has always been in consideration. Thus, it will be useful to set it above the pivot of 0.8961.

Alternative scenario:

The breakdown of 0.8961 will allow the pair to go further up to the levels of 0.9010 and 0.9161.