Consolidation under resistance
Dynamic, even vertical reflection after testing support at 0.9860 slowed down. USDCHF reached its resistance, which is the maximum from April 2017 – the area of 1.0100. Shortness of breath is already underway for the third session, but what needs to be assessed as a merit for demand is that the resistance so far has not caused a deeper rebound but only flat consolidation.
Possible scenarios
If the level of 1.0100 is broken, then upper limit of bearish channel is just above it. Breaking the latter will lead demand to area 1.0290. This is a key resistance which demand wasn’t able to break since 2010.
However, if there are any problems with continuation of the uptrend and the level of 1.0100 will cause declines, this situation may end in a dynamic decline. In such case, the downward movement would quickly lead USDCHF to key support area of 0.9860.
