Overview:
- The USD/CHF pair continues to move upwards from the level of 0.9750. Yesterday, the pair rose from the level of 0.9750 to a top around 0.9797. Today, the first resistance level is seen at 0.988 followed by 0.9860, while daily support 1 is seen at 0.9750 (61.8% Fibonacci retracement). According to the previous events, the USD/CHF pair is still moving between the levels of 0.9750 and 0.9860; so we expect a range of 110 pips. Furthermore, if the trend is able to break out through the first resistance level at 0.9797, we should see the pair climbing towards the double top (0.9818) to test it. Therefore, buy above the level of 0.9797 with the first target at 0.9818 and further to 0.9860 in order to test the daily resistance 1. Also, it might be noted that the level of 0.9860 is a good place to take profit because it will form a new double top. On the other hand, in case a reversal takes place and the USD/CHF pair breaks through the support level of 0.9750, a further decline to 0.9707 can occur which would indicate a bearish market. Overall, we still prefer the bullish scenario which suggests that the pair will stay above the zone of 0.9750 today.
