Overview:
- The USD/CHF pair broke support which turned into strong resistance at the level of 0.9637 yesterday. The level of 0.9637 coincides with a golden ratio (38.2% of Fibonacci), which is expected to act as major support today. The Relative Strength Index (RSI) is considered overbought because it is above 50. But, the RSI is still signaling that the trend is downward as it is still strong below the moving average (100). This suggests the pair will probably go down in coming hours. Accordingly, the market is likely to show signs of a bullish trend. In other words, sell orders are recommended below 0.630 with the first target at the level of 0.9594. From this point, the pair is likely to begin a descending movement to the point of 0.9594 and further to the level of 0.9503. The level of 0.9503 will act as strong support. On the other hand, if a breakout happens at the support level of 0.96999, then this scenario may become invalidated.
Intraday technical levels:
- R3: 0.9759
- R2: 0.9699
- R1: 0.9637
- PP: 0.9601
- S1: 0.9664
- S2: 0.9563
- S3: 0.9443
