CHF/USD Technical Analysis (45-Minute Chart) – Bullish Reversal

CHF/USD Technical Analysis (45-Minute Chart) – Bullish Reversal from Key Support Zone
🧠 Overview of the Market Structure
The CHF/USD pair recently exhibited a strong shift in structure on the 45-minute chart. After forming a Rising Wedge followed by a breakdown, the price tested a major support zone around 1.2105 and reacted with strength. The recent price action suggests a bullish reversal, supported by improving market structure and a breakout from short-term resistance.

🧱 Phase-by-Phase Breakdown
1. Rising Wedge Formation and Breakdown – Bearish Phase
The chart initially presented a Rising Wedge, a classical bearish pattern that typically forms during uptrends as momentum slows.

This wedge was confirmed by converging trendlines, lower volume on higher highs, and a sharp breakdown afterward.

Upon the wedge breakdown, the pair declined sharply and found demand at the horizontal support zone around 1.2105, a region where price had previously reversed.

2. Key Support Zone Holding Firm
The area between 1.2105 and 1.2130 served as a significant accumulation zone.

Multiple tests of this level (noted by the orange circles) showed consistent buy-side interest, leading to strong bullish candles and long lower wicks.

The structure transitioned from making lower lows to forming higher lows, signaling a shift in sentiment from bearish to bullish.

3. Bullish Momentum Rebuild and Resistance Break
After bottoming out near 1.2105, the pair began building ascending triangle-like structure with consistent higher lows pressing into a horizontal resistance line near 1.2215–1.2230.

The eventual breakout above this zone was clean and supported by impulsive bullish candles, confirming buyer dominance.

This break was further validated as price continued to respect support after breakout, a critical confirmation for long setups.

🛠 Technical Indicators & Price Action Insight
Market Structure: Reversal from bearish (lower lows/lower highs) to bullish (higher lows/higher highs).

Support Zone (1.2105–1.2130): Proven demand level with strong buyer interest.

Resistance Zone (1.2230): Now broken, acting as potential support on a pullback.

Impulse Move: The breakout leg above the resistance came with strong bullish momentum, suggesting institutional buying or smart money participation.

🎯 Trade Setup

Parameter Level Description
Entry Zone 1.2219 Breakout confirmation above resistance
TP1 1.2273 Local price structure target/resistance
TP2 (Final) 1.2312 Major resistance zone – potential exhaustion
Stop Loss (SL) 1.2105 Below key structure support, invalidates setup
✅ Reward-to-Risk: >2:1 – Highly favorable.

✅ Confirmation: Structure breakout, pullback support holding, volume behavior.

✅ Bias: Strong Bullish.

🧩 Why This Setup Stands Out
🔍 Confluence Factors:

Support level held multiple times.

Bullish reversal from oversold region.

Clear change in price structure (lower highs → higher lows).

Resistance breakout confirmed with clean price action.

📈 Trade Plan:

Buy on breakout confirmation or retest of 1.2215–1.2230.

TP1 for partials at 1.2273; trail stop to break-even.

TP2 at 1.2312 for full target. If price breaks above, reassess for extended continuation.

📌 Final Notes for Traders
This CHF/USD chart presents a high-probability bullish continuation setup after a well-defined structural shift and breakout. The move is supported by clear technical elements: a failed bearish wedge, sustained demand at support, and a fresh higher high formation.

Traders can take advantage of the risk-defined opportunity, aiming for conservative and aggressive profit targets, while safeguarding with a smart SL placement.

This setup is ideal for swing traders and short-term position traders on the 45-minute to 1H chart.