The USDCHF had a bearish momentum yesterday and now struggling around 0.8400 support area. The bias is bearish in nearest term especially if price able to move consistently below 0.8400 testing 0.8330 – 0.8274 historical low. However note that it’s too early to say that the major bearish scenario is ready to continue as price is still moving in range area of 0.8550 – 0.8274 and need a clear break below 0.8274 to confirm the bearish continuation scenario testing new historical low projection around 0.8200 even lower. A historical low always has the potential to attract some long term traders to have a long position so the downside momentum might not be a smooth move. Immediate resistance at 0.8450. A clear break above that area would lead us to neutral zone in nearest term but would open the door for another upside attempt retesting 0.8555.
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