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USD/CHF is testing a key inflection point!

Will enough bears show up at the level to extend USD/CHF’s downtrend?

Let’s take a closer look at the pair’s daily chart:

USD/CHF: Daily

USD/CHF Daily Forex Chart

USD/CHF Daily Forex Chart Chart by TV

As you can see, USD/CHF has been making lower highs and lower lows since early November when the pair peaked at the 1.0150 zone.

May has been more of the same for the U.S. dollar, which dropped down to the .8825 zone before pulling back up to the .9000 – .9050 area.

How low can USD/CHF go?

USD bears have a chance to jump in at the .9000 area that lines up with the a support level from February AND the 38.2% Fibonacci retracement of 2023’s downswing.

Oh, and have I mentioned that USD/CHF’s current levels are also not too far from the top of a descending channel and the daily chart’s 100 SMA?

A short trade at current levels or the first signs of bearish momentum would yield a good risk ratio especially if USD/CHF makes new 2023 lows in the next couple of weeks.

Feel like buying USD against CHF instead?

You might want to wait until USD/CHF clearly breaks above the descending channel and then target areas of interest like the 200 SMA or the .9200 major psychological handle.

Whichever bias you end up trading, make sure to manage your risks and to stick to your trading plan like white on rice!