After a sharp drop on December 3, USD/CHF clearly showed signs of weakness. The price is still moving to new lower lows, yet failing to go above R2 resistance, a high hit on December 4.
An overall downtrend is likely to continue especially after the price rejected an upper trend line of the descending channel together with 76.4% Fibonacci retracement level.
Consider selling USD/CHF, while it is near R1 (0.9974) resistance area targeting potential double bottom formation. The S5 support area is near 0.9800. The stop loss should be placed just above the R2 (1.0030) resistance.
Support: 0.9940, 0.9910, 0.9880, 0.9845, 0.9800
Resistance: 0.9975, 1.0030
The material has been provided by InstaForex Company - www.instaforex.com