In today’s technical analysis, let’s focus on USD/CHF, which is currently in a clearly negative technical setup.
The broader structure is a downtrend. Price has already broken below an important horizontal support marked in orange. After the breakdown, the market returned to test this level twice, at the beginning of March and again a few days ago. Both times, the former support acted as resistance, confirming the bearish shift.
At the same time, price tested a green downtrend line. This test also resulted in a rejection, with the market bouncing lower from that dynamic resistance. This adds another layer of confirmation that sellers remain in control.
Looking at the most recent price action, we can identify a flag pattern marked with blue lines. In this context, the flag is a bearish continuation formation. Since it appears after a decline, it statistically favors another move to the downside.
All these elements align in the same direction. Price is below the broken horizontal support, has been rejected from dynamic resistance, and is consolidating within a bearish flag. This creates a consistent bearish narrative.
As long as USD/CHF remains inside this structure, sentiment stays negative. The natural target for this setup is the lower boundary of the flag, where the next reaction from the market can be expected.