Overview:
- The USD/CHF pair movement was controversial as it took place in a narrow sideways channel for a while. The market showed signs of instability. Amid the previous events, the price is still moving between the levels of 0.9751 and 0.9650. The daily resistance and support are seen at the levels of 0.9751 and 0.9650, respectively. In consequence, it is recommended to be cautious while placing orders in this area. Thus, we should wait until the sideways channel completes. On the H4 chart, the price spot of 0.9751 remains a significant resistance zone. Therefore, there is a possibility that the USD/CHF pair will move to the downside from the 0.9751 level, which represents the pivot point today.
- Resistance is seen at the level of 0.9751 today. So, sell below 0.9751 with the first target at 0.9650 to test last week's bottom. In overall, we still prefer the bearish scenario as long as the price is below the level of 0.9751. Furthermore, if the USD/CHF pair is able to break out the bottom at 0.9650, the market will decline further to 0.9590.
- However, a stop loss should be set above the second resistance of 0.9552.
