USDCHF has broken below the neckline of the head and shoulders pattern recently. According to classic technical analysis, this pattern heralds trend reversal and breaking below the neckline proceeds the final downward impulse. Nevertheless, the sell-off has been halted at the support zone in the 0.9050 area, marked with previous price reactions and exterior 161.8% retracement. Should we see a break below this area, sell-off may accelerate towards the lower limit of the yellow box marked on the chart below (textbook range of the breakout from head and shoulders pattern). On the other hand, should recovery continue, the earlier-broken neckline is the key near-term support to watch.
Source: xStation5
Daily summary: Fifth week of declines on the Wall Street
Three markets to watch next week (27.03.2026)
Chart of the Day: USDJPY at a Crossroads. Will the Government Step In?
Morning Wrap: Trump Announces a “Pause”. Another 10-Day Ultimatum!