USD/CHF produced two consecutive bearish candles on the daily chart after a long consolidation. The pair is trading around a level of support, where the price had a bounce earlier. If the price makes a bearish breakout on the daily chart at that level of support, the pair may make a long bearish move. Today’s two major intraday charts show that the price may get more bearish later. Let us now have a look at those three charts.
Chart 1 USD/CHF Daily Chart
The chart shows that the price has long been bearish. It made a bullish correction and found its resistance around 0.95395. The price consolidated around the level for several days and produced a bearish engulfing candle. Yesterday’s candle came out as a bearish candle too. If today’s candle comes out as a bearish candle closing below the level of 0.94200, the sellers may go short in the pair aggressively and drive the price towards the South. The price may find its next support around 0.92450.
Chart 2 USD/CHF H4 Chart
The chart shows that the price had several rejections at the level of 0.95290. At the last rejection, the pair produced a bearish engulfing candle. Since then the pair has been heading towards the South with good bearish momentum. The sellers may go short again below the level of 0.94200. The price may find its next support around 0.93750. In case of a bullish breakout at the level of 0.94530, the price may find its next resistance around 0.94800.
Chart 3 USD/CHF H1 Chart
The chart shows that the price has kept making lower lows upon having a bullish correction. At the last bounce, it produced a bullish engulfing candle and headed towards the North. The level of 0.94520 has been working as a level of resistance. At the last rejection, the price has been heading towards the South upon producing a bearish inside bar. Thus, the pair has been heading towards the level of support at a moderate pace. The pair may get more bearish momentum below the level of 0.94230. The price may find its next support around 0.93750. On the contrary, if the price has a bounce at the level of 0.94230, the price may get choppy and make a moderate bullish move.
The level of support in the daily chart is a key level. Both the buyers and the sellers are going to keep their eyes on this level. A bullish reversal candle may attract the buyers to look for long opportunities. However, a bearish breakout may attract more sellers to go short in the pair and make it very bearish in the coming days.