The USD/CHF pair is looking for support while a further fall is still mildly in favor. With the 0.9859 resistance level intact, the pair has been rejected at this level and its outlook remains bearish. The pair breaking at the 0.9844 level will resume medium term fall from 0.9859 and target next long-term at 0.9820. However, a firm breaking at the 0.9859 level will indicate trend reversal and will turn the outlook bullish.
In the bigger picture, the current development suggests that the pair at the 0.9859 key resistance could not be taken out firmly as downtrend form levels look to extend. There are various interpretations of the price actions. The medium-term outlook will stay bearish as long as the 0.9859 resistance holds and downtrend could extend to the 0.9820 level. The pair breaking at the 0.9859 level will indicate that USD/CHF pair has successfully defended again and will turn outlook bullish for the 0.9868 resistance level.
The dollar after the good run seems to be taking a break after the rally last week and continues to rise away. The down days are characterized by some bear candles, whilst any recovery up days is beset with struggles to make any headway and turn in effect into consolidation days. The current bearish candle was another indication where the bears come into the picture again and bulls failed to make any sustainable impact. The daily momentum indicators have all now taken on a corrective outlook, with the pair’s stochastic falling below 80 and the lines having crossed lower. The pair is now into the old pivot band at the 0.9838 level. The likelihood is that the support of this level which has often been seen as an inflection point will now be tested. The four hourly charts show the resistance at the 0.9859 level is bolstered as a key level, with initially an area of near-term overhead supply. The USD/CHF pair shows more sideways trading that settles near the resistance level, as the price keeps its stability below this level keeping the negative pressure valid for the upcoming period and waiting to test initially. The pair breaking at this level is required to confirm extending the bearish wave towards the 0.9820 followed by 0.9808 levels.
Therefore, we will continue to suggest the bearish trend for today unless we witnessed clear breach holding a daily close above the 0.9859 level.
The expected trading range for today is between the 0.9808 support and 0.9859 resistance levels.
Expected trend for today: Bearish
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This article was originally posted on FX Empire
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