Overview:
- In the long term, the USD/CHF pair is likely to set strong resistance at 0.9599 and support stands at 0.9321 today. The price is still moving around the key level of 0.9475 since the market opened. Moreover, the USD/CHF pair is still below the ratio of 50% of Fibonacci retracement levels. Additionally, the RSI calls for the downtrend. As a result, the price has already formed the strong resistance at this spot of 0.9599. The pair is approaching it in order to test it now. The USD/CHF pair is likely to get downside momentum rather convincing. The structure of the fall does not look corrective for indicating a bearish opportunity below 0.9599. It will a good sign to sell below 0.9599 with the first target at 0.9427(this level is coinciding with the daily pivot point) and it will call for the downtrend to continue towards 0.9321 (the weekly support 1).
Observations:
- Major support is seen at the level of 0.9321.
- Major resistance will set at the level of 0.9599.
- We expect a new range up to 293 pips this week.
- If the trend is upward, the strength of the currency will be defined as: USD is in an uptrend and CHF is in a downtrend.
- Stop loss should never exceed your maximum exposure amounts.
- As a rule, the market is highly volatile if the last day had huge volatility.
