Technical analysis of USD/CHF for February 09, 2017

Overview:

The price of the USD/CHF pair is moving between the levels of 0.9960-0.9990 and 0.9860. The USD/CHF pair continued to move downwards from the level of 0.9960-0.9990. The pair has fallen from the level of 0.9960-0.9990 to the bottom around the spot of 0.9890. Consequently, the USD/CHF pair broke support at the level 0.9960-0.9990, which turned into strong resistance at the level of 0.9960-0.9990. In the H1 time frame, the level of 0.9960-0.9990 is expected to act as the major resistance today. Currently, the price is moving in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish market. The price is still below the moving average (100). From this point, we expect the USD/CHF pair to continue moving in the bearish trend from the resistance levels of 0.9960-0.9990 and 0.9922 towards the target level of 0.9860. If the pair succeeds in passing through the level of 0.9860, the market will indicate the bearish opportunity below the level of 0.9860 so as to reach the second target at 0.9830.

Moreover, if the USD/CHF pair is able to break out the level of 0.9830, the market will decline further to 0.9800. Briefly, the price spot of 0.9990-0.9960 remains a significant resistance zone. So, a possibility that the USD/CHF pair will have downside momentum is rather convincing and the structure of a fall does not look corrective. In order to indicate a bearish opportunity below 0.9990-0.9960. Sell below 0.9990-0.9960 with the first targets of 0.9890, 0.9860, and 0.9800. However, the stop loss should be located above the level of 1.0021.