Is USD/CHF getting exhausted from its slide?

I’m seeing a potential reversal chart pattern being completed on the 4-hour chart of this pair.

Better keep your eyes on these nearby inflection points to see if the trend is still our friend:

USD/CHF 4-hour Forex Chart by TradingView

This dollar pair has been cruising lower for more than a month already, dragged lower by a combination of U.S. growth concerns and safe-haven flows to the Swiss franc.

However, the SNB just announced a 0.25% rate cut in an effort to discourage more CHF inflows while the Fed recently upgraded its inflation forecast, possibly giving them enough reason to maintain policy.]

Could this mean that USD/CHF’s downtrend is about to turn?

Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the U.S. dollar and Swiss franc, then it’s time to check out the economic calendar and stay updated on daily fundamental news!

Price made a couple of failed attempts to break below the .8775 support area, creating a double bottom pattern with the neckline around the .8850 minor psychological mark and R1 (.8870). Another test of this resistance zone seems to be in the works, so look out for bullish candlesticks suggesting that further gains are likely.

If that’s the case, USD/CHF could set its sights on the next upside targets at R2 (.8910) then R3 (.8970) or even the monthly highs closer to the .9000 major psychological mark. If the neckline resistance holds, on the other hand, be ready for a move back to the lows at S1 (.8770) or lower.

Don’t forget that the 100 SMA remains safely below the 200 SMA on this time frame, with the gap between the moving averages widening to hint at sustained bearish pressure. The 100 SMA dynamic inflection point even lines up with the neckline to add to its strength as a ceiling.

Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!