Black line- support trend line
The USDCHF pair has been in a strong uptrend since May 3rd 2023, forming higher highs and higher lows on the 4 hour chart. The pair has also been respecting the rising trend line that connects the swing lows of the uptrend. The RSI indicator has been mostly above the 50 level, indicating bullish momentum. The pair has recently tested the 0.9146 resistance level, which coincides with the 61.8% Fibonacci retracement level of the previous downtrend from 0.9336 to 0.8818. Today price is under pressure after making a lower high at 0.9118. If the pair breaks below the support trend line at 0.904, it may signal a reversal of the uptrend and a possible retest of the lower Fibonacci retracement levels of 0.916 and 0.8940. The RSI may also fall below the 50 level, indicating bearish momentum. Traders need to be cautious as the trading week started with a higher high than Friday's high and price is now into negative territory suggesting a possible reversal is close.
