Overview:
- The USD/CHF pair will probably move between the levels of 0.9514 and 0.9596. The price has been set below strong resistance at the level of 0.9596, which represents the double top (38.2% of Fibonacci retracement levels). Additionally, the trading range will be below 0.9596. Thereupon, the pair has already formed strong resistance at the levels of 0.9600/0.9596, and it is now approaching it in order to test it. Therefore, the possibility that the USD/CHF pair will have downside momentum is rather convincing, and the structure of the fall does not look corrective. It will be a good sign to sell below 0.9600 with the first target of 0.9566. Equally important, it will call for a downtrend to continue with a bearish trend towards 0.9515. On the other hand, the price at 0.9515 will possibly form strong support (11.8% of Fibonacci retracement levels on the H4 chart). Accordingly, saturation around 0.9515 to rebound the pair is likely to happen. Furthermore, it is possible that the market is going to start showing signs of the bullish market from this area. Hence, it will be a good sign to buy above 0.9515 with the target of 0.9596 in the long term.
Trading recommendations:
- Buy above the support of 0.9512 with the targets of 0.9570 and 0.9590. However, the stop loss should be placed below the double bottom at the level of 0.9470.
