Overview:
- The USD/CHF pair has faced strong resistances at the levels of 0.9773 because support became resistance on September 9, 2016. So, the strong resistance has already formed at the level of 0.9773 and the pair is likely to try to approach it in order to test it again. However, if the pair fails to pass through the level of 0.9773, the market will indicate a bearish opportunity below the new strong resistance level of 0.9773 (the level of 0.9773 coincides with a ratio of 61.8% Fibonacci). Moreover, the RSI starts signaling a downward trend, as the trend is still showing strength above the moving average (100). Thus, the market is indicating a bearish opportunity below 0.9773 so it will be good to sell below the area of 0.9773 with the first target of 0.9704. It will also call for a downtrend in order to continue towards 0.9662. The daily strong support is seen at 0.9627. However, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the level of 0.9800. Since the trend is above the 61.8% Fibonacci level (0.9773), the market is still in a downtrend.
