Overview:

• As expected, the USD/CHF pair continues to move downwards from the level of 1.0095. Yesterday, the pair dropped from the level of 1.0095 to the bottom around 1.0040. Today, the first resistance level is seen at 1.0095 followed by 1.0115, while daily support 1 is seen at 1.0034. According to the previous events, the USD/CHF pair is still moving between the levels of 1.0095 and 1.0010; for that we expect a range of 85 pips (1.0095 - 1.0010) at least. If the USD/CHF pair fails to break through the resistance level of 1.0095, the market will decline further to 1.0034. This would suggest a bearish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 1.0034 with a view to test the daily pivot point and continues towards the next objective of 1.0010. On the contrary, if a breakout takes place at the resistance level of 1.0095 (major resistance), then this scenario may become invalidated.