We will retain our yesterday’s outlook of USD/CHF. The pair recorded lower tops and lower bottoms, which confirmed a negative outlook. The downward momentum is further reinforced by both declining 20-period and 50-period moving averages. The relative strength index lacks upward momentum.
To sum up, below 0.9925, expect a new drop with targets at 0.9875 and 0.9855 in extension.
Chart Explanation: The black line shows the pivot point. The present price above the pivot point indicates a bullish position, and the price below the pivot points indicates a short position. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.
Strategy: SELL, Stop Loss: 0.9925, Take Profit: 0.9875
Resistance levels: 0.9945, 0.9960, and 0.9995
Support levels: 0.9875, 0.9855, and 0.9850
The material has been provided by InstaForex Company – www.instaforex.com