USD/CHF Analysis: Bearish Trend and Potential Reversal Zones

17 juil.

The USD/CHF continues to decline and may encounter its first support in the demand area around the 0.8800 level. This ongoing downward movement has prompted us to close a previous short position on this pair, which you can find linked below.

Recently, the Swiss National Bank (SNB) reduced its key interest rate by 25 basis points for the second consecutive meeting in June. This decision was influenced by subdued inflationary pressures and the resilience of the Swiss Franc, contributing to the current bearish trend in USD/CHF. The rate cut underscores the SNB’s efforts to stimulate the economy amidst low inflation, which in turn has strengthened the Franc.

Looking ahead, the bearish pattern in USD/CHF may persist until the first week of August. However, we are closely monitoring potential reversal zones. The next key demand areas, as indicated in the chart, could provide opportunities for a reversal if the bearish trend loses momentum.

Traders should remain vigilant and watch for any signs of a trend change, particularly around these demand areas. Identifying these zones is crucial for planning potential entry and exit points in anticipation of a market reversal.

For further details and to review our previous short position, please refer to the link below.

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