USDCHF → A breakout of trend support. Retest is a signal

USDCHF is entering the correction phase after a prolonged bullish trend. The trigger is the DXY correction (on the local timeframe).The support at 0.89866 may be broken soon.

On the chart, we see a breakout of the support of the ascending price channel. The support tandem consists of the ascending line and 200-SMA, which is a rather strong signal, foreshadowing a medium-term decline. We consider 0.8778 as a target, as there is a strong liquidity accumulation in this area, which may interest the market. The dollar index ( DXY ) is going down through local support and is preparing to test 105.8 and 105.5 - this movement will affect the forex market accordingly.

Support levels: 0.89866, 0.8932
Resistance levels: previously broken trend support, 0.9030.

In the long term, I expect a break of the nearest support with the formation of a medium-term decline to the above targets.

Regards R. Linda!

Comment:

Price is testing the support area for a breakout

Comment:

USDCHF acts strictly according to the scenario I mentioned.
An accumulation, a retest and an attempt to break the support is formed, which becomes successful. Price reaches the 0.8932 area as one of the first targets

Comment:

Breakout of the next support. The market is preparing for further fall. The fundamental background is on the side of the bear market

Comment:

If a false breakdown of 0.8932 happens, the market will activate a strong bullish momentum, but the continued consolidation under the level and the gradual decline in price will continue the idea of falling to 0.8778