Overview:
- The USD/CHF pair continues moving downwards from the level of 0.9702, which represents the double top in the H1 chart. Yesterday, the pair dropped from the level of 0.9702 to the bottom around 0.9632. Today, the first resistance level is seen at 0.9702 followed by 0.9745, while daily support is seen at the levels of 0.9632 and 0.9589. According to the previous events, the USD/CHF pair is still trapping between the levels of 0.9702 and 0.9589. Hence, we expect a range of 113 pips in coming hours. The first resistance stands at 0.9702. If the USD/CHF pair fails to break through the resistance level of 0.9702, the market will decline further to 0.9589. This would suggest a bearish market because the RSI indicator is still in a negative area and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 0.9589 in order to test the second support (0.9589). On the contrary, if a breakout takes place at the resistance level of 0.9745 (the weekly pivot point), then this scenario may become invalidated. But, we guess that the downtrend will probably be continued as long as the level of 0.9702 is not broken.
