Pivot point: 0.9733
The USD/CHF pair has broken support at the level of 0.9780 which acts as a resistance now.
The USD/CHF pair continues to move downwards from the areas of 0.9780 and 0.9733.
The RSI is still signaling that the trend is downward, while the moving average (100) is headed to the downside. Accordingly, the bearish outlook remains the same as long as the EMA 100 is pointing to the downtrend.
The bias remains bearish in the nearest term testing 0.9660 or lower, since the market is still in an uptrend. We still prefer the bullish scenario.
Today, the USD/CHF pair is continuing to move in a bearish trend from the new support level of 0.9660, to form a bearish channel.
Amid the previous events, we expect the pair to move between 0.9733 and 0.9660.
Therefore, sell below the daily pivot point the level of 0.9878 0.9733 the first target at 0.9660 in order to test the daily support 1.
The market will decline further to 0.9660 in order to return to the double top. Additionally, a breakout of that target will move the pair further downwards to 0.9583.
However, if a breakout happens at 0.9780, this scenario may be invalidated.
The material has been provided by InstaForex Company – www.instaforex.com