FX.co ★ USDCHF, H4 | Potential bounce from 1st support?

The current momentum of USD/CHF is strongly bullish. However, in the short term, there is a possibility of a further drop towards the 1st support before a potential rebound towards the 1st resistance.

Positioned at 0.8906, the 1st support level is considered a pullback support, indicating it could serve as a point for price to rebound following a temporary retreat from an upward trend.

Located at 0.8862, the 2nd support is an overlap support that has previously acted as both a support and resistance level. If the price breaks below the 1st support, it may potentially reach this level before a rebound.

At 0.8947, the 1st resistance level is characterized as a multi-swing high resistance, having repeatedly capped price advances in the past. If the price rebounds from the 1st support and gains momentum, it could aim to reach this resistance level.

Situated at 0.8994, the 2nd resistance level is another multi-swing high resistance. Should the bullish momentum persist and the price surpass the 1st resistance, it may target this level.

Additionally, it is noteworthy that the price has broken above a symmetrical triangle chart pattern. A bullish breakout signal may be indicated if the price surpasses the upper trendline of the pattern.