0.7870 Break Looms – Next Stop 0.7800 for USDCHF?

USDCHF trades below 0.7900 on board-based US dollar selling.  Any breach below 0.7870 confirms further bearishness. Currently trading at 0.78766, it reached an intraday low of 0.78726.

Technical Analysis Points to Further Bullishness

The pair is trading below the 55-EMA, the 200-EMA, and the 365-EMA on the 4-hour chart, indicating a bearish trend. The immediate resistance is at  0.7925; any break above targets  0.7965/0.8000/0.8040/0.8090/0.8150/0.82180.

Support Levels and Potential Declines

On the downside, near-term support is around 0.7870; any violation below will drag the pair to 0.7800/0.7770.

Indicators (4-hour chart)

CCI (50) - Bearish

Directional Movement Index -  bearish

Trading Strategy Recommendation

It is good to sell on rallies around 0.7900 with SL around 0.7950 for a TP of 0.7800.