Overview:
- As expected, the USD/CHF pair continues to move downwards from the the spot of 0.9377/0.9333. The price of 0.9377 represents the first resistance on the four-hour chart.
- The pair fell from the levels of 0.9377 and 0.9333 to the bottom around 0.9393. Today, the first resistance level is seen at 0.9333 and 0.9377 followed by 0.9432, while the daily support is seen at the levels of 0.9289 and 0.9230.
- According to the previous events, the USD/CHF pair is still trapping between the levels of 0.9333 and 0.9230. Hence, we expect a range of 147 pips in the coming hours. The first resistance stands at 0.6790, for that if the USD/CHF pair fails to break through the resistance level of 0.9377, the market will decline further to 0.9289.
- 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 0.9230 in order to test the second support (0.9230).
- However, if a breakout takes place at the resistance level of 0.9377, then this scenario may become invalidated. Also, it should be noted that the stop loss should be placed above the zone of 0.9430.
