Last week, USD/CHF hit a bottom at.8875, and it appears that there were enough bulls to drive the pair to just below the.9000 level.
Unfortunately for the bulls, the psychological support level at.9000 coincides with the downswing's 50% Fibonacci retracement.
As the pair is already exhibiting a bearish divergence with Stochastic, it is also uncomfortably close to a trend line resistance that has been present since early March.
Does this indicate that the USD/CHF will continue its recent downtrend?
USD bears might profit from the 4-hour downturn by selling at the first indication of pressure to the downside. The lows from the previous week can be used as a starting point, but if selling momentum is strong enough, you can also aim for new monthly lows.
Until the USD/CHF truly reaches the trend line and 61.8% Fibonacci resistance zones, USD bulls can take advantage of this week's upsurge and purchase more of the pair. If you notice enough bullish momentum, you might even think about purchasing an upside breakthrough!
