USDCHF Analysis: Bearish Flag Test and Fibonacci Support
Solid ECN - Sellers of the USDCHF have tested the lower band of the bearish flag at the 0.8782 mark. Interestingly, the price rebounded from 0.8782 and is attempting to stabilize within the channel and above the 78.2% Fibonacci level. The technical indicators remain neutral, with the RSI hovering around the median line and the bars of the Awesome Oscillator striving to stay above the signal line.
From a technical standpoint, the bullish outlook will remain valid if the USDCHF price stays above 0.8782. In this scenario, the bulls will likely aim for the high of February 13th, the 0.8885 mark.
On the other hand, if the value of the Canadian dollar surpasses 0.878, the bullish scenario should be invalidated. The next bearish target could be the 50% Fibonacci support level, further reinforced by the Ichimoku cloud.