USDCHF stopped its rally at 0.92500 and made a pullback
In the past two and a half months, USDCHF was in a strong bullish consolidation from 0.85526 to 0.92448.
USDCHF chart analysis
Today’s chart review will be on a four-hour time frame in order to give us a broader overview of USDCHF movements in the previous period, and based on that, we will analyze the future potential trend.
In the past two and a half months, USDCHF was in a strong bullish consolidation from 0.85526 to 0.92448. Shortly after we climbed above 0.92000, there was a pullback and formation of a bearish consolidation. The dollar started to weaken, and the pair retreated below the 0.91000 level. We now have additional resistance in the EMA50 moving average as we have lost the support that we had in the previous bullish consolidation.
What could trigger a further pullback?
USDCHF could now trigger a further pullback if it does not bounce back above the EMA50 moving average. Potential lower targets are 0.90500 and 0.90000 levels. Around the 0.90000 level, we made a break in the previous bullish consolidation, and we could expect to receive appropriate support there.
A return of USDCHF above the EMA50 moving average would strengthen the dollar against the Swiss franc and thus increase the optimism to return above the 0.92000 level again. After that, we would be in a situation to test the previous resistance zone around the 0.92500 level. In the following, we will see a breakout above and the formation of a new high. Potential higher targets are 0.92750 and 0.93000 levels.
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