Overview:
- The USD/CHF pair continues to move downwards from the level of 0.9777, which represents the ratio of 38.2 Fibonacci retracement. The current price is set at the level of 0.9740. The pair dropped from the level of 0.9777 to the bottom around 0.9695. Today, the first resistance level is seen at 0.9777 followed by 0.9819, while daily support is seen at the levels of 0.9723, 0.9682 and 0.9640. According to the previous events, the USD/CHF pair is still trapping between the levels of 0.9723 and 0.9640. Hence, we expect a range of 83 pips in coming hours. The first resistance is seen at 0.9777, for that if the USD/CHF pair fails to break through the resistance level of 0.9777, the market will decline further to 0.9681. This would suggest a bearish market because the RSI indicator is still in a negative area and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 0.9639 in order to test the second support which represents a double bottom.
Trading tips:
- It is recommended to sell during the correction and open short trades below 0.9777 with targets at 0.9681 and 0.9639. Also, it should be noted that the downward trend is still strong. However, if a breakout takes place at the resistance level of 0.9819, then this scenario may become invalidated.
