Overview:
- As expected the USD/CHF pair continues to move downwards from the level of 0.9629. Yesterday, the pair dropped from the level of 0.9677 (this level of 0.9677 coincides with the double top) to the bottom around 0.9600. Today, the first resistance level is seen at 0.9630 followed by 0.9653, while daily support 1 is seen at 0.9600. According to the previous events, the USD/CHF pair is still moving between the levels of 0.9629 and 0.9577; for that, we expect a range of 76 pips (0.9553 - 0.9629). If the USD/CHF pair fails to break through the resistance level of 0.9653, the market will decline further to 0.9600. This would suggest a bearish market because the RSI indicator is still in a positive area and does not show any trend reversal signs. The pair is expected to drop lower towards at least 0.9553 with a view to testing the double bottom. On the contrary, if a breakout takes place at the resistance level of 0.9677 (the double top), then this scenario may become invalidated.
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