Overview:
- As expected the USD/CHF pair continues to move downwards from the level of 0.9801 and settles down around the spot of 0.9742. Yesterday, the pair dropped from the level of 0.9801 to the bottom around 0.9742. Today, the first resistance level is seen at 0.9801 followed by 0.9836, while daily support 1 is seen at 0.9742. According to the previous events, the USD/CHF pair is still moving between the levels of 0.9836 and 0.9742; for that we expect a range of 94 pips. If the USD/CHF pair fails to break through the resistance level of 0.9801, the market will decline further to 0.9742. This would suggest a bearish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 0.9694 with a view to test the daily pivot point. Moreover, another support levels are seen at 0.9641 and 0.9626. On the contrary, if a breakout takes place at the resistance level of 0.9742, then this scenario may become invalidated. But in overall, we still prefer the bullish scenario in the H1 chart.
