USDCHF has been trading between a 150-pip range for since September, finding support at 0.9840 and resistance just below parity at 0.9990. On the daily time frame, it looks like the currency pair has also been bouncing off the 100 SMA and 200 SMA.
Zooming into the 4-hour chart, it looks like the currency pair has already broken through and is now trading below the 100 SMA and 200 SMA. If there are enough bears in the market, USDCHF could be on its way to test support at the bottom of the channel around 0.9860 where it hit lows earlier this month.
USDCHF 4-hour chart
A closer look at the hourly time frame shows a head and shoulders chart pattern. The currency pair has already broken through neck line support but a pullback to retest the area around 0.9930 could be possible. Using the Fibonacci retracement tool, we can see that the price coincides nicely with the 50% Fib level.
On the other hand, if the dollar emerges stronger than the franc in today’s trading, we could see USDCHF make a run for resistance to yesterday’s high at 0.9963.