USD/CHF is expected to trade in a lower range as the pair is under pressure. The pair retreated from 0.9700 (the high of July 14) and broke below its 20-period and 50-period moving averages. In addition, the bearish cross between 20-period and 50-period moving averages has been identified, which indicates a negative signal. The relative strength index is bearish below its neutrality level at 50.
To conclude, below 0.9660, look for a new drop to 0.9585 and even to 0.9570 in extension.
Chart Explanation: The black line shows the pivot point; the present price above pivot point indicates the bullish position and below pivot points indicates the short position. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.
Strategy: SELL, Stop Loss: 0.9660, Take Profit: 0.9585
Resistance levels: 0.9675, 0.9700, and 0.9750
Support levels: 0.9585, 0.9570, and 0.9525
The material has been provided by InstaForex Company – www.instaforex.com