The USD/CHF is currently experiencing a strong bearish momentum, evident from its position below a major descending trend line and the bearish Ichimoku cloud. These factors indicate the potential for further downside movement.
In the short term, there is a possibility that the price might react bearishly to the first resistance level at 0.9059 and subsequently decline towards the first support level. The first resistance level has historically acted as a significant barrier to upward movement and aligns with the 38.2% Fibonacci retracement, further solidifying its importance as a strong resistance level.
In the event of a rejection at this resistance, the price could potentially target the first support at 0.8859. This level has served as a reliable support in previous price swings and is reinforced by the 23.6% Fibonacci retracement, making it a significant price floor.
Between the current price and the first resistance, there exists an intermediate resistance at 0.9018, which acts as a pullback resistance. This level could pose an additional obstacle for the price as it attempts to move towards the first resistance.
However, if the price breaches the first support, it may extend its downward trajectory towards the second support level at 0.8759, which has previously acted as a swing low support.
