Overview:
- The USD/CHF pair broke resistance, which turned into strong support at 0.9923. Right now, the pair is trading above this level. It is likely to trade in a higher range as long as it remains above the support (0.9923), which is expected to act as a major support today.
- Therefore, there is a possibility that the USD/CHF pair will move upwards and the structure does not look corrective. The trend is still below the 100 EMA for that the bullish outlook remains the same as long as the 100 EMA is headed to the upside.
- From this point of view, the first resistance level is seen at 0.9997 followed by 1.0037, while daily support 1 is seen at 0.9923 (38.2% Fibonacci retracement). According to the previous events, the USD/CHF pair is still moving between the levels of 1.0037 and 0.9923; so we expect a range of 110 pips.
- Consequently, buy above the level of 0.9923 with the first target at 0.9997 so as to test the daily resistance 1 and further to 1.0037. Besides, the level of 1.0037 is a good place to take profit because it will form a double top.
- On the contrary, in case a reversal takes place and the USD/CHF pair breaks through the support level of 0.9923, a further decline to 0.985 can occur, which would indicate a bearish market.
- Overall, we still prefer the bullish scenario, which suggests that the pair will stay below the zone of 0.9930 today.
