Overview:
- The USD/CHF pair opened below the daily resistance (0.9862). It continued moving downwards from the level of 0.9862 to the bottom around 0.9789. Today, the first resistance level is seen at 0.9830 followed by 0.9862, while daily support 1 is seen at 0.9738. This would suggest a bearish market because the RSI indicator is still in a negative area and does not show any signs of a trend reversal at the moment.
- Amid the previous events, the USD/CHF pair is still moving between the levels of 0.9862 and 0.9738, so we expect a range of 124 pips today. Therefore, the major resistance can be found at 0.9862 providing a clear signal to sell with a target seen at 0.9770. If the trend breaks the minor support at 0.9770, the pair will move downwards continuing the bearish trend development to the level of 0.9738 in order to test the daily support 2. Overall, we still prefer the bearish scenario that suggests that the pair will stay below the zone of 0.9862.
- On the other hand, the daily strong resistance is seen at 0.9862. Thus, if a breakout happens at the resistance level of 0.9862, then this scenario may be invalidated.
