USDCHF is trading around 0.9190 just above the November lows and above the critical upward sloping support trend line we mentioned in previous posts. At current levels, since the decline in price has stopped and it seems that price has found a balancing point, we prefer to turn bullish as price continues to respect the key trend line.
The orange trend line has been tested several times and the fact that price continues to respect it, increases its importance. Bulls do not want to see price break below it. Breaking below the orange trend line would be a bearish sign. That is why just above the orange trend line we prefer to be bullish looking for another bounce higher as it did before. Support is found at 0.9140-0.9150. Bulls do not want to see price break below this support area. On the other hand, resistance is found at 0.9240 area where we witnessed several rejection attempts. So breaking above 0.9240 will increase chances of another run higher towards 0.9350.
