Our first downside target which we predicted in yesterday’s analysis has been hit. USD/CHF is under pressure. The pair has pulled back, and is now challenging its horizontal support at 0.9530. The nearest key resistance at 0.9610 maintains the strong selling pressure. Besides, the relative strength index is bearish below its neutrality area at 50, and calls for a new drop.
In which case, as long as 0.9610 is not surpassed, likely decline to 0.9530 and 0.9490 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 point 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 at 0.9530, take profit at 0.9530.
Resistance levels: 0.9650, 0.9670, and 0.9700
Support levels: 0.9530, 0.9490, and 0.9455.
The material has been provided by InstaForex Company – www.instaforex.com