USD/CHF H4 Timeframe The current movement of the USD/CHF on the H4 timeframe indicates market dynamics in a directional phase, particularly as the price begins to move around the area adjacent to the 100- and 200-day moving averages. These two moving averages play a crucial role as medium- to long-term trend indicators. The chart shows the 100-day moving average (MA) hovering slightly above the 200-day moving average (MA), indicating a persistent, albeit less dominant, bullish trend. The flattening slopes of both MAs emphasize that the market lacks strong momentum, suggesting a consolidation rather than an impulsive trend. The price last moved around 0.8030, right in the intersection of price dynamics and the two moving averages. When the price remains above the 100- and 200-day moving averages, the market typically exhibits a bullish bias. However, under current conditions, the price has been seen breaking through these two MAs several times, rendering this area a "neutral zone" indicating market indecision. The inability of buyers to consistently maintain prices above the 100-day moving average (MA) indicates that bullish momentum is weakening after failing to break through the 0.8070–0.8080 resistance level in previous attempts.
In terms of price structure, the 0.8070 level remains a crucial immediate resistance level. Every time the price approaches this area, sellers step in and push the price down. This indicates distribution in the upper zone. As long as the price is unable to create a strong and stable H4 candle above 0.8070, bullish potential will likely be limited. If this resistance level is broken cleanly, the opportunity for an increase towards 0.8116 opens, especially if the breakout candle remains above the 100-day moving average (MA) and 200-day moving average (MA) as further confirmation. Conversely, on the downside, key support lies at 0.7985. This level is key because it has also been close to the 200-day moving average (MA) in previous sessions. If the price breaks through this support level and closes strongly below it, the medium-term trend could shift to bearish. The 200-day moving average (MA) would then shift from dynamic support to dynamic resistance. If this scenario occurs, the next downside target is 0.7950, followed by 0.7930, and even towards 0.7872 as major support. Overall, USD/CHF is in a crucial phase. The 100-day moving average (MA) and 200-day moving average (MA) are key indicators to watch to identify the next trend bias. A strong breakout above 0.8070 would strengthen the bullish bias, while a break below 0.7985 would open the door to a more assertive bearish trend. Under these conditions, traders should wait for clearer confirmation before entering positions with significant volume.
