USDCHF has been on the rise this year, breaking an important trendline connected from 2022 highs on a daily chart. This breakout suggests that higher prices may be on the horizon within a large triangle range.
On the 4-hour chart, it appears that the pair is undergoing a corrective setback after completing a five-wave rally and breaking a trendline. We are currently monitoring an A-B-C corrective decline, with wave C already testing the first support zone at 0.8900. Price stabilization may occur in the near-term, but for a bullish trend to resume, we need to see a strong move back above the 0.9 level and out of the current channel. If the C wave extends further, the next support levels to watch for would be around 0.87 – 0.86.
Overall, we anticipate that CHF weakness will continue to be evident this year, not only against the USD but possibly against other currencies as well.