Overview:
- The USD/CHF pair was trading below the area of 0.9609 and 0.9654 this week. The pair has already formed the minor resistance at 0.9609 and the strong resistance is seen at the level of 0.9654 as it represents the weekly resistance 1. So, the major resistance is seen at 0.9654, while immediate support is found at 0.9537. Today, the level of 0.9537 represents a daily support in the H1 time frame. If the pair breaks below the first support of 0.9537, the USD/CHF pair may resume its movement to 0.9500 to test the weekly support 1. From this point, we expect the USD/CHF pair to move between the levels of 0.9609 and 0.9500. Equally important, the RSI is still calling for a strong bearish market and the current price is below the moving average 100. As a result, sell below the level of 0.9605 with targets at 0.9537 in order to form a double bottom. The market will move downwards continuing the development of the bearish trend to the levels of 0.9500 and 0.9466. However, stop loss should always be taken into account; accordingly, it will be beneficial to set the stop loss above the last bullish wave at the level of 0.9654.
