USD/CHF Weekly Forecast: Potential Short Opportunity

Market Outlook:

The USD/CHF pair appears to be setting up for a potential short opportunity this week, based on key technical signals from the weekly chart. Here’s why:

1. Key Resistance Rejection & Price Action:
• Price is testing a strong resistance zone, aligning with a previous high.
• There is rejection wicks forming at this level, signaling a struggle for buyers to push higher.
• The red zone highlights a potential area for price reversal, with an expectation of bearish movement from this level.

2. Moving Averages Alignment (Bearish Bias)
• The 50 MA (yellow) and 200 MA (red) are acting as dynamic resistance.
• A rejection from this level suggests that price could be respecting the longer-term moving average structure.
• If price fails to close above this resistance, it strengthens the bearish bias.

3. RSI & Momentum Indicators Showing Weakness
• RSI appears to be in a potential overbought zone or showing divergence.
• This suggests that bullish momentum is weakening, supporting a short scenario.