© Dukascopy Bank SA
Although USD/CHF has been trading in a pronounced down-trend since the beginning of last year's July, the support area circa 0.8850 managed to negate the bearish momentum and initiate a recovery. However, the rally encountered a resistance level at 0.9120, which denied every attempt of the currency pair to advance further north.
Accordingly, even though the four-hour and daily technical indicators are bullish, given the long-term negative bias towards the pair, it is more likely to breach the rising support line at 0.9074 and target 0.8984, after which the Dollar will be expected to re-test the December 27 low.
© Dukascopy Bank SA