Overview: – USD/CHF pair is turning down once again after arriving at 0.9800 level we have seen a reversal candlesticks on the daily time frame. Well this was not a surprise for us as we have seen strong supply pressure from the 0.9900 to 0.9500 level already. Well it’s an early sell call we will get further downfall 0.9590 level on hourly closing basis.
Currently pair is trading below major and minor EMA lines and the outlook insist us to have a bearish view now and it will further confirm once we see a daily closing below the 0.9600 level. In our previous report also we mentioned to sell the pair around 0.9850 for the target of 0.9700 and 0.9600 and our targets have been achieved easily so we are expecting that readers must have made profit from this move.
Technical Analysis:- From technical prospective we can see that a rounding top pattern has been formed where bears are leading and playing at front foot. Well they way bears are reacting it seems like 0.9500 level is the very next target and further down is still on the cards.
Also, a clear cut breakout of the symmetrical triangle pattern we can see on the daily technical chart which favors the bears. The primary trend is down and secondary trend is also down and in a downtrend market always sell on highs will be profitable strategy. A very short term uptrend line has been breached out by bears at an initial level.
Pair is trading below all the major and minor EMA lines which suggest us that go for short and add more shorts below 0.9580 level. Odds are in favor of bears and intraday bias remains bearish on the pair as long as 0.968 0 levels remains intact. RSI has turned down so we may see some selling pressure in the pair. A bearish crossover on the MACD indicator is also providing us bearish signal.
What next :- The 0.9680 is key resistance level followed by 0.9750 level whereas 0.9500 level which is a key support level followed by 0.9400 level.
Trade idea:- Based on the chart and study above we can suggest go for sell at current levels 0.9610 for the target of 0.9500 and 0.9400 stop loss is 0.9680.
