Overview:
- The USD/CHF pair continues to move downwards from the level of 1.0221, which represents the ratio of 61.8% Fibonacci retracement on the H1 chart. Yesterday, the pair dropped from the level of 1.0221 to the bottom around 1.0159. The current price of 1.0190. Today, the first resistance level is seen at 1.0221 followed by 1.0265, while daily support is seen at the levels of 1.0159 and 1.0121. According to the previous events, the USD/CHF pair is still moving between the levels of 1.0221 and 1.0121. Hence, we expect a range of 100 pips in coming hours. The first resistance stands at 1.0221, for that if the USD/CHF pair fails to break through the resistance level of 1.0221, the market will decline further to 1.0159. 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 1.0121 in order to test the second support (1.0121). On the contrary, if a breakout takes place at the resistance level of 1.0265 (the double top), then this scenario may become invalidated.
