4 min readUSD/CHF is currently trading at levels not seen since 2011. The recent breakdown below long-term high timeframe support came in the wake of escalating U.S. tariffs, which temporarily weakened the U.S. dollar versus the Swiss franc. However, with trade tensions now appearing to cool, especially between the U.S. and China, the question becomes: can USD/CHF reclaim this critical support? A move back above would place the pair back within a previously well-defined range, offering clear structure for traders and investors.
Looking at the daily chart, USD/CHF is now retesting the previous range low area between 0.8420 and 0.8450. A successful reclaim of this zone would place price action back within the former range, opening the door to a move toward the next high timeframe resistance around the range EQ level at 0.8750.
Dropping down to the 4-hour chart, we can see a developing bullish structure, with price breaking out of a short-term range marked by blue dotted lines. USD/CHF is currently testing this previous range from above, and this level must hold to validate any further upside potential. Notably, this is the second test of the zone, and as is often the case, repeated tests weaken a level from the direction of pressure, while strengthening it from the opposite side. Should buyers defend this area and break the descending trendline marked on the chart, it could mark the beginning of a short to medium-term reversal. This would align with a stabilising macro environment and risk-on sentiment.
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