The USDCHF pair showed a steady upward trend during the week, moving between 0.8055 and 0.8213 from Monday to Thursday. Buyers faced resistance just below the 38.2% retracement level of the drop from April to May, causing a slight pullback to around 0.8150 to 0.8160. Currently, there is a key technical level near 0.8170, where the 100-hour and 200-hour moving averages meet. Prices fell briefly below the 100-hour average but quickly bounced back, indicating a short-term bias towards rising prices.

Upcoming Week Expectations

As we enter the next week, the pair is at a crucial point. If it breaks above 0.8213 and the 38.2% retracement level, it may lead to further upward movement. However, if prices drop below the converged moving averages, we could see a decline, with 0.8146 serving as the last support before a more significant drop. Important resistance levels are at 0.8213 to 0.8216 and 0.8249, which are previous highs. Key support levels include 0.8163, 0.8158, and 0.8146. A further decline could challenge levels at 0.8091 and 0.8055. Overall, this week showed a slow and steady rise in USDCHF. The price remained in a narrow range, hitting a ceiling just below 0.8213, close to the retracement level from the overall decline in April and May. Buyers faced a technical barrier, which caused a temporary dip. Right now, the pair is just above a point where two important moving averages meet—the 100-hour and 200-hour averages. This area acts as temporary support. Although prices briefly dipped below, they quickly recovered, suggesting a moderate inclination towards higher prices for now.

Potential Scenarios

From this point, two main scenarios could unfold. If the price decisively breaks above 0.8213 without getting stuck near the next retracement level at 0.8216, there could be stronger buying. The next target above that is 0.8249, where the price previously hesitated. Conversely, if the price falls back below the converging averages, we’ll need to watch for signs of a reversal. If support at 0.8146 fails, tighter conditions or greater volatility could arise, especially if levels near 0.8091 don’t hold. This situation is quite narrow, as the defined range allows for clear entry and exit points. Timing will be crucial. Since movements are small and measured at the moment, we should pay attention to how long the price remains around the lower edge of 0.8150. If higher lows stop happening, a stronger downward move may occur. The price hasn’t touched 0.8055 since the start of the week, so a new dip to that level could indicate weaker buying strength. For now, the 0.8170 area remains critical; it protects the potential for upward movement while also anchoring broader expectations. A break in either direction could lead to significant price action. Create your live VT Markets account and start trading now.

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