USD/CHF dipped below 0.895 and has lost almost 1% of its value since Thursday, December 19. Stochastic signals oversold as the prices bounce off the 38.2% Fibonacci.
A firm close above 0.895 immediate resistance can potentially trigger the uptrend, targeting 0.905.
USDCHF Technical Analysis – 23-December-2024
The American currency trades bullish against the Swiss Franc. However, the uptrend lost its momentum after the prices rose to 0.902. As of this writing, USD/CHF bounced off the 38.2% Fibonacci retracement level at 0.891, stabilizing above it at approximately 0.893.
Interestingly, the Stochastic Oscillator dipped below 20, depicting 16 in the description; this means the pair is oversold and can potentially resume its bullish trajectory.
USDCHF Forecast – 23-December-2024
The critical resistance level that divides the bull market from the bear market rests at 0.889, backed by the 75-period SMA. From a technical standpoint, the USD/CHF trend outlook remains bullish above this level.
However, for the uptrend to be triggered, bulls must close above the immediate resistance of 0.895. If this scenario unfolds, the USD/CHF path to 0.905 will likely be paved.
The Bearish Scenario
Please note that the bullish scenario should be invalidated if bears push the prices below 0.889. In this scenario, the downtrend from 0.902 could be extended to the 61.8% Fibonacci retracement level at 0.884.