Technical analysis of USD/CHF for December 29, 2017

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Overview:

  • As expected, the USD/CHF pair continues to move downwards from the areas of 0.9800. Yesterday, the pair dropped from the level of 0.9800 to 0.9757, which coincides with a ratio of 23.6% Fibonacci on the H4 chart. Today, resistance is seen at the levels of 0.9800 and 0.9849. So, we expect the price to set below the strong resistance at the levels of 0.9800 and 0.984; because the price is in a bearish channel now. Amid the previous events, the price is still moving between the levels of 0.9800 and 0.9734 (double bottom). In overall, we still prefer the bearish scenario as long as the price is below the level of 0.9800. Furthermore, if the USD/CHF pair is able to break out the bottom at 0.9734, the market will decline further to 0.9700 (the level of 0.9734 will form a double bottom). On the other hand, if the price closes above the strong resistance of 0.9849, the best location for a stop loss order is seen above 0.9760; hence, the price will fall into a bearish trend in order to go further towards the strong support at 0.9700 to test it again.
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