Overview:
- The USD/CHF pair traded downwards from the level of 0.9803 since last week. The market seems stable for that there are no changes in the direction. The bias remains bearish in the nearest term testing 0.9620 or lower. The bottom price is seen at 0.9620. The trend has rebounded from the bottom of 0.9620 towards 0.9730. So, the strong resistance has already been formed at 0.9803 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 0.9803, the market will indicate a bearish opportunity below the new strong resistance level of 0.9803 which coincides with a ratio of 38.2% Fibonacci. Overall, I still prefer a bearish scenario at this phase. Hence, the market is indicating a bearish opportunity below 0.9803 so it will be good to sell at 0.9803 with the first target at 0.9620. It will also call for a downtrend in order to continue towards 0.9560. The daily strong support is seen at 0.9560.
- On the other hand, the stop loss should always be taken into account, for that it will be logical to set your stop loss at the level of 0.9860 which coincides with the ratio of 50% Fibonacci retracement level.
