- The USD/CHF pair movement was controversial as it took place in a narrow sideways channel, the market showed signs of instability. Also, it should be noted that the support and resistance are seen at levels of 0.9733 and 0.9893 respectively. Amid the previous events, the price is still moving between the levels of 0.9733 and 0.9893.
- Bearish outlook:
- Thereupon, the price spot of 0.9893 remains a significant resistance zone. Therefore, a possibility that the USD/CHF pair will have downside momentum is rather convincing and the structure of a fall does not look corrective. In order to indicate a bearish opportunity below 0.9893, sell below the price of 0.9893 with the first targets at 0.9788 and 0.9733.
- However, the stop loss should be located above the level of 0.9900.
- Bullish outlook:
- Accordingly, the USD/CHF pair is showing signs of strength following a breakout of the highest level of 0.9733. So, buy above the level of 0.9733 with the first target at 0.9847 in order to test the daily resistance 1 and further to 0.9893. Also, it might be noted that the level of 0.9893 is a good place to take profit because it will form a double top. On the other hand, in case a reversal takes place and the USD/CHF pair breaks through the support level of 0.9733, a further decline to 0.9684 can occur, which would indicate a bearish market.
The material has been provided by InstaForex Company – www.instaforex.com