Having created a double bottom near 0.7860, USDCHF experienced a small decline. Any break under 0.7860 reinforces more bearishness. It touched an intraday high of 0.79412 and is now trading at 0.79332.
Technical Analysis Points to Further Bullishness
The pair is trading above the 55-EMA, below the 200-EMA, and 365 EMA on the 4-hour chart, indicating a mixed trend. The immediate resistance is at 0.7965; any break above targets 0.8000/0.8040/0.8090/0.8150/0.82180.
Support Levels and Potential Declines
On the downside, near-term support is around 0.7860; any violation below will drag the pair to 0.7800/0.7770.
Indicators (4-hour chart)
CCI (50) - Bullish
Directional Movement Index - Neutral
Trading Strategy Recommendation
It is good to sell on rallies around 0.7965 with SL around 0.8000 for a TP of 0.7800.
