USDCHF → A breakout of trend support. Retest is a signal

18 oct. 2023

USDCHF is entering the correction phase after a prolonged bullish trend. The trigger is the DXY correction (on the local timeframe).The support at 0.89866 may be broken soon.



On the chart, we see a breakout of the support of the ascending price channel. The support tandem consists of the ascending line and 200-SMA, which is a rather strong signal, foreshadowing a medium-term decline. We consider 0.8778 as a target, as there is a strong liquidity accumulation in this area, which may interest the market. The dollar index ( DXY ) is going down through local support and is preparing to test 105.8 and 105.5 - this movement will affect the forex market accordingly.

Support levels: 0.89866, 0.8932
Resistance levels: previously broken trend support, 0.9030.

In the long term, I expect a break of the nearest support with the formation of a medium-term decline to the above targets.

Regards R. Linda!

18 oct. 2023

Note

Price is testing the support area for a breakout

19 oct. 2023

Note

USDCHF acts strictly according to the scenario I mentioned.
An accumulation, a retest and an attempt to break the support is formed, which becomes successful. Price reaches the 0.8932 area as one of the first targets

20 oct. 2023

Note

Breakout of the next support. The market is preparing for further fall. The fundamental background is on the side of the bear market

22 oct. 2023

Note

If a false breakdown of 0.8932 happens, the market will activate a strong bullish momentum, but the continued consolidation under the level and the gradual decline in price will continue the idea of falling to 0.8778