I am observing that the USD/CHF pair has formed a bullish weekly candlestick, which I interpret as a reasonably strong signal for potential further appreciation. I am also noting that a clear trend line can be constructed using the recent sequence of higher lows, providing me with an additional structural framework for the bullish bias. However, I understand that for a more definitive bullish zigzag pattern to materialize, I need to see a sustained consolidation above the key resistance level at 0.8123. Consequently, I am reconciling myself to the fact that the price action may continue within a broader ranging environment for the time being, as the market gathers momentum for its next decisive move
I am somewhat conflicted because the recent movement has struck me as rather untechnical, diverging from my specific expectations on the lower timeframes. I was anticipating a retest of the established trend line on the H4 chart before witnessing the initiation of any significant bearish correction. Instead, I am observing that the downward pullback commenced prematurely, which is why I consciously avoided entering any sell positions, as the setup lacked the confirming structure I sought. Currently, I am focusing my analytical efforts on the last distinct bullish impulse wave, which I measure from the low of 0.7860 to the high of 0.8016. I am applying a Fibonacci retracement grid to this specific price cycle to identify potential support zones for this ongoing pullback. My primary target for this decline rests at the 0.7938 level, which corresponds to a key Fibonacci retracement value. Furthermore, I am patiently monitoring the ongoing formation of candlesticks across multiple timeframes, as I believe the market’s intent is not yet fully revealed. I am maintaining a watchful posture because the exact nature of the corrective pattern—whether a simple zigzag or a more complex structure—remains unclear to me, and I require more price action to confidently determine the next high-probability trading scenario.
