Overview:
- The USD/CHF pair continued to trade downwards from the level of 0.9733 which represented a major resistance today. The pair dropped from the level of 0.9733 (this level of 0.9733 coincides with the ratio of 23.6% Fibonacci) to the bottom around 0.9620. However, the trend has rebouned from the bottom of 0.9620 towards the level of 0.9677(minor resistance). Today, the first resistance level is seen at 0.9677 followed by 0.9733, while daily support 1 is seen at 0.9560. According to the previous events, the USD/CHF pair is still moving between the levels of 0.9733 and 0.9560; for that, we expect a range of 173 pips (0.9560 - 0.9733) in coming hours. If the USD/CHF pair fails to break through the resistance level of 0.9733, the market will decline further to 0.9620 again. This would suggest a bearish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 0.9560 with a view to testing the daily support 1. On the contrary, if a breakout takes place at the resistance level of 0.9733 (major resistance), then this scenario may become invalidated.
