Overview:

• The USD/CHF pair continues to move downwards from the level of 0.9949. Yesterday, the pair dropped from the level of 0.9949 (this level of 0.9949 represents a major resistance) to the bottom around 0.9852. Today, the first resistance level is seen at 0.9896 followed by 0.9949, while daily support 1 is seen at 0.9812. According to the previous events, the USD/CHF pair is still moving between the levels of 0.9896 and 0.9812; for that we expect a range of 84 pips (0.9896 - 0.9812). If the USD/CHF pair fails to break through the resistance level of 0.9896, the market will decline further to 0.9812. 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 0.9760. On the contrary, if a breakout takes place at the resistance level of 0.9949, then this scenario may become invalidated.