The USD/CHF pair is trading in the green at 0.8811 at the time of writing but the bias remains bearish. The rate could only test and retest the immediate resistance levels before going down. Still, after its strong downside movement, short term rebounds are natural.

The USD is fighting hard to appreciate versus its rivals even if the US New Home Sales came in worse than expected today. Tomorrow, the US is to release the CB Consumer Confidence, HPI, and S&P/CS Composite-20 HPI. Positive data could help the USD to dominate the currency market in the short term.

USD/CHF Rebound!

As you can see on the H1 chart, the rate escaped from the extended range signaling further drop. Now, it tries to come back to test and retest the immediate resistance levels.

The downtrend line and the range's support of 0.8822 represent key upside obstacles. As long as it stays below these levels, the rate could extend its sell-off.

USD/CHF Outlook!

Staying below the downtrend line and dropping below the 0.8793 former low activates more declines and brings new selling opportunities.

On the contrary, a valid breakout above the downtrend line and above 0.8822 activates a larger rebound.