- February 19, 2026
- Posted by: EWGFX
- Category: Technical analysis
The USD/CHF pair is exhibiting a significant technical transition on the daily timeframe. After a sustained period of bearish pressure, we are observing a Change of Character (CHoCH). This suggests that the previous downtrend is losing steam and a potential reversal is in play.
1. The Demand Zone & Liquidity
Price has found strong buyers within the green demand zone between 0.7600 and 0.7650. This area has acted as a solid floor, where we recently saw a Higher Low (HL) formation. This HL is crucial as it indicates that liquidity has been swept and buyers are now protecting the 0.7630 level.
2. Market Structure & CHoCH
The chart shows multiple structural breaks. The most recent move upward has breached the minor internal resistance, confirming our bullish bias. However, for a full-scale trend reversal, we need to see price break and sustain above the immediate Lower High (LH) at 0.7750.
3. Projected Path
I am anticipating a two-phase move:
Retracement: A brief pullback to the 0.7680 level to mitigate the imbalance created by the recent spike.
Expansion: A continuation move targeting the supply zone near 0.7850.
Trade Management (Personal View):
Bias: Bullish above 0.7600.
Objective: 0.7850 (Major Supply Zone).