USDCHF: Could be telling a story of break-retest-reversalThe price action on the USDCHF presents an opportunity of structural transition. The descending trendline has acted as dynamic resistance, has contained each rally attempt beautifully. This trendline is marked by multiple rejections, reflected bearish dominance, a controlled downtrend in motion.
The recent movement though could signal a shift. The market has started to break above this descending structure, and it could early suggest that bearish momentum is weakening.
I will be waiting for the price to return to the broken trendline, treating former resistance as newfound support. It’s a confirmation pattern in order to filter false moves, a structure retest that reinforces breakout reliability.
From this base, I am expecting it to target the 0.81900 level, as shown. This area coinciding with horizontal resistance that aligns with previous reactions. Such levels as natural “gravitational pivots”.
An ideal approach here would involve observing the character of the pullback. If the market returns to the trendline with declining bearish volume and forms higher lows on lower timeframes, it strengthens the bullish case.
The trendline break on the chart is not just a signal, it’s a storyline unfolding. It marks a shift with a story. And if volume, price structure, and timing align as they appear poised to, this move could be the first move in a broader upside correction or trend reversal.
Just sharing my thoughts for the charts, this isn’t financial advice. Always confirm your setups and manage your risk properly.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
