Overview:
- On the four-hour chart, the USD/CHF pair continues moving in a bearish trend from the resistance levels of 0.9699 and 0.9637. Currently, the price is in the bearish channel. This is confirmed by the RSI indicator signaling that we are still in the bearish trending market. As the price is still below the moving average (100), immediate resistance is seen at 0.9637, which coincides with a ratio (38.2% of Fibonacci). Also, it should be noticed that support has become resistance at the price of 0.9637 in order to change polarity. Consequently, the first resistance is seen at the level of 0.9637 today. So, the market is likely to show signs of a bearish trend around the spot of 0.9637/0.9640. In other words, sell orders are recommended below 0.9637 with the first target at the level of 0.9594. Furthermore, if the trend is able to break out through the first resistance level of 0.9594, we will see the pair dropping towards the second support (0.9504) to test it. It would also be wise to consider where to place stop loss. It should be set above the first resistance of 0.9640.
