Overview:
- The USD/CHF pair fell from the level of 0.9640 to the bottom at 0.9550 yesterday. Today, the USD/CHF pair has faced strong support at the level of 0.9550. So, the strong support has been already faced at the level of 0.9492 and the pair is likely to try to approach it in order to test it again and form a double bottom. Moreover, if the pair succeeds in passing through the level of 0.9492, the market will indicate a bearish opportunity above the level of 0.9492. A breakout of that target will move the pair further downwards to 0.9418. Today, we expect the USD/CHF pair to move between the levels of 0.9550 and 0.9418. Equally important, the RSI is still calling for a strong bearish market as well as the current price is also below the moving average (100) and (50) in the daily time frame. As a result, sell below the resistance of 0.9550 with targets at 0.9492 and 0.9418. Nevertheless, stop loss should always be taken into account, accordingly, it will be of beneficial to set the stop loss above the last bullish wave at the level of 0.9715.
Intraday technical levels:
- R3: 0.9846
- R2: 0.9700
- R1: 0.9640
- PP: 0.9561
- S1: 0.9492
- S2: 0.9418
- S3: 0.9366
