Good day! Looking at the USD/CHF pair on the four-hour chart, I notice that the stochastic oscillator has recently reached its lower boundary and is now starting to turn upward. This kind of movement often suggests that the current bearish wave may be losing momentum and could be approaching its end. However, in my view, the downward move is not fully complete yet, mainly because the Zigzag indicator has not confirmed a reversal signal so far. Even though there are early signs of a potential upward correction, I believe buyers are not satisfied with the previous high around 0.7870. It seems likely that they will attempt to push the price higher and possibly break beyond that level. This indicates that bullish interest is still present in the market, even if it hasn’t fully developed into a strong trend yet.
That being said, I am not considering entering a buy position at the current level. From the perspective of my trading system, there isn’t a complete set of confirmation signals to justify a long trade. The market still looks uncertain, and conditions could shift quickly, especially if the bearish pressure resumes. Because of this, I think the best approach right now is to remain patient and wait for clearer confirmation. Ideally, I would like to see the price retest the resistance level at 0.7870. This level will likely act as a key decision point for the market. If the price manages to break and hold above it, then we could consider a stronger bullish scenario. On the other hand, if the price fails to break through and shows signs of rejection, it may indicate that the downward trend is not over yet. For now, I prefer to stay on the sidelines and observe how the price behaves around this resistance area before making any trading decisions.
