Overview:
- As expected, the USD/CHF pair fell sharply from the level of 0.9639 towards 0.9570. Now, the price is set at 0.6615. The resistance is seen at the level of 0.6641 and 0.6581. Moreover, the price area of 0.9639 - 0.9699 remains a significant resistance zone. Therefore, there is a possibility that the USD/CHF pair will move downside; and the structure of a fall does not look corrective. The trend is still below the 100 EMA as the bearish outlook remains the same as long as the 100 EMA is headed downwards. For this reason, amid the previous events, the price is still moving below the levels of 0.9639 and 0.9699. If the USD/CHF pair fails to break through the resistance level of 0.9639, the market will decline further to 0.9564 as the first target. This would suggest a bearish market because the RSI indicator is still in a negative spot and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 0.9503 so as to test the daily support 2. On the contrary, if a breakout takes place at the resistance level of 0.9699, then a stop loss should be placed at 0.9758.
