Overview:
- The USD/CHF pair continues moving downwards from the areas of 0.9560. Yesterday, the pair dropped from the level of 0.9560 to 0.9500, which coincides with the double bottom on the H4 chart. Today, resistance is seen at the levels of 0.9560 and 0.9600. So, we expect the price to set below the strong resistance at the levels of 0.9560 and 0.9600; because the price is in a bearish channel now. Amid the previous events, the price is still moving between the levels of 0.9560 and 0.9500. In overall, we still prefer the bearish scenario as long as the price is below the level of 0.9560. Furthermore, if the USD/CHF pair is able to break out the bottom at 0.9500, the market will decline further to 0.6460 (daily support 2). If the price closes below the support of 0.9500, then the trend will call for bearish market towards the targets of 0.6460 and 0.6400. On the other hand, if the USD/CHF pair is able to break the resistance of 0.9560. Then, the best location for a stop loss order is seen above 0.9600; hence, the price will rise into a bullish trend in order to go further towards the strong resistance at 0.9758 to test it again. The level of 0.9758 will form a double bottom.
