Overview:
- The USD/CHF pair movement was mixed as it took place in a narrow sideways channel for a while. The USD/CHF pair didn’t make any significant movements yesterday (ranging between the levels of 1.0191 and 1.0053). There are no changes in our technical outlook. The market showed signs of instability when it reached the top of 1.0191. Amid the previous events, the price is still moving between the levels of 1.0054 and 1.0191. The daily resistance and support are seen at the levels of 1.0191 and 1.0054 respectively. In consequence, it is recommended to be cautious while placing orders in this area.
- Thus, we should wait until the sideways channel has completed. On the H4 chart, the price spot of 1.0191 remains a significant resistance zone. Therefore, there is a possibility that the USD/CHF pair will move to the downside and the fall structure does not look corrective. Resistance is seen at the level of 1.0191 today. So, sell below 1.0191 with the first target at 1.0100. In overall, we still prefer the bearish scenario as long as the price is below the level of 1.0191. Furthermore, if the USD/CHF pair is able to break out the bottom at 1.0100, the market will decline further to 1.0053.
- On the contrary, if a breakout takes place at the resistance level of 1.0230, then this scenario may become invalidated. Remember to place a stop loss; it should be set below the second support of 1.0260.
The material has been provided by InstaForex Company – www.instaforex.com
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