- USD/CHF has broken below a key level bringing the uptrend into doubt.
- Other band omens are also appearing suggesting the possibility of a bearish shift in the trend.
USD/CHF is at risk of tipping into a downtrend and reversing its short and medium-term bull trend, as it extends its pullback below a key level. Other “bad omens” also make their appearance on the price chart, suggesting a risk of more downside.
USD/CHF Daily Chart
USD/CHF has found support at the (green) 200-day Simple Moving Average (SMA) at 0.8822 and although it could still mount a recovery from its current level and thereby rescue the uptrend, the evidence is building for a possible reversal and start of new downtrend. Given “the trend is your friend” such a reversal would suggest a bearish bias then dominating.
The pair has broken below the key 0.8801 November 9 swing low and although it failed to close below the level, the breach is still a bearish indication.
The pair formed a Two-Bar reversal pattern (red rectangle on chart) at the November 22 and 23 highs which is bearish. This happens when a long green candle that reaches a peak is followed by a long red candle of a similar size. It is a sign of a reversal in sentiment and a signal of more downside to follow.
The Relative Strength Index (RSI) momentum indicator has formed a Double Top pattern (red ellipse) which is bearish for momentum and consequently also price.
A break below the 0.8797 November 27 low would confirm a change in the short-term trend and more downside to targets at 0.8748 (August 14 high), and 0.8615 (November 4 low).
That said, if price remains above the November 27 low and recovers, it could signal a resumption of the uptrend.
If so, a break above the 0.8958 November 22 high would probably confirm a continuation up to the next target at 0.9000 (round number and psychological area), followed by 0.9050 (July 2 swing high).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks

AUD/USD jumps back above 0.6150 despite US-China trade tensions
AUD/USD has picked up fresh bids and regained 0.6150 in Thursday's Asian trading, resuming the previous recovery led by US President Trump's decision for an immediate 90-day tariff pause for many countries. However, escalating US-China trade war and Chinese disinflation could limit the Aussie's upswimg.

USD/JPY tumbles below 147.00, awaits US CPI for fresh impetus
USD/JPY has come under intense selling presure and drops below 147.00 in the Asian session on Thursday. The US-China trade war escalation and the divergent BoJ-Fed policy expectations underpin the Japanese Yen and weigh heavily on the pair amid a renewed US Dollar downtick. US CPI awaited.

Gold price awaits US CPI inflation amid deepening US-China trade war
Gold price is biding time near $3.100 in Asian trading session on Thursday, gathering strength for the next push higher. The further upside in the Gold price depends on the upcoming US Consumer Price Index (CPI) data.

Dogecoin soars as 21Shares files S-1 for DOGE ETF
Dogecoin rallied nearly 12% on Wednesday after asset manager 21Shares filed an S-1 application with the Securities & Exchange Commission to launch the 21Shares Dogecoin exchange-traded fund.

Tariff rollercoaster continues as China slapped with 104% levies
The reaction in currencies has not been as predictable. The clear winners so far remain the safe-haven Japanese yen and Swiss franc, no surprises there, while the euro has also emerged as a quasi-safe-haven given its high liquid status.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.