Overview:
- The USD/CHF pair movement was controversial as it took place in a narrow sideways channel for a while. The market showed signs of instability. Amid the previous events, the price is still moving between the levels of 0.9929 and 0.9895. The daily resistance and support are seen at the levels of 0.9972 and 0.9895 respectively. In consequence, it is recommended to be cautious while placing orders in this area. Thus, we should wait until the sideways channel is completed. Also, it should be noted that the double top is seen at the point of 0.9953. The price spot of 0.9953 - 0.9972 remains a significant resistance zone. Therefore, there is a possibility that the USD/CHF pair will move to the downside and the fall structure does not look corrective. So, sell below the zone of 0.9953 - 0.9972 with the first target at 0.9895 to test the support. In overall, we still prefer the bearish scenario as long as the price is below the level of 0.9895. Furthermore, if the USD/CHF pair is able to break out the bottom at 0.9895, the market will decline further to 0.9845. Overall, we still prefer the bearish scenario today.
