USDCHF Stalls in Tight Range: Technicals Signal Potential Downside Break

USDCHF has traded in a narrow range between 0.80070 and 0.79287 for the past five days. Currently trading at 0.79730, it reached a peak of 0.79830.

Technical Analysis Points to Further Weakness

The pair is trading above the 55-EMA,  below the 200 EMA and 365 EMA on the 4-hour chart, indicating a weak trend. The immediate resistance is at  0.7980; any break above targets  0.8020/0.8070/0.8090/0.8135/0.8170/0.8215/0.8250.

Support Levels and Potential Declines

On the downside, near-term support is around 0.7920; any violation below will drag the pair to 0.7900/0.7860/0.7800.

Indicators (4-hour chart)

CCI (50) - Bullish

Directional Movement Index -  Neutral

Trading Strategy Recommendation

It is good to sell on rallies around 0.7980-820 with SL around 0.8020 for a TP of 0.7860.