USD/CHF is trending lower on the four-hour chart, with the USD/CHF pair making lower lows as the U.S. dollar weakens and Swiss franc demand rises.

Recently, especially from April 17 to today’s trading, the price has failed to make new lows, which indicates that the medium-term downward momentum has weakened and entered a consolidation range.

Traders should wait for clearer price action to determine the next trend. The first scenario is when the price rises above the 0.78455 level and makes a top on the four-hour frame, which signals the end of the downtrend and the possible start of an uptrend.

For the second scenario, the price fell below the 0.77746 level and bottomed on the four-hour frame, indicating the possibility of completing the downtrend.

The first scenario is considered closer to verification than the second as downside momentum fades and the price fails to establish new lows below 0.77746. Prices also made two consecutive bottoms, while the RSI recorded two bottoms above each other, indicating that prices are diverging, which is usually a reversal signal that supports the possibility of price increases.

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