USD/CHF is expected to trade in a lower range as it is capped by a negative trend line. The pair has been capped by a bearish trend line since June 26, which confirms a negative outlook. The descending 20-period and 50-period moving averages are playing resistance roles. The relative strength index is also capped by a declining trend line since June 26.
Hence, as long as 0.9605 is not broken, look for a further decline to 0.9550 and even to 0.9525 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: 0.9605, Take Profit: 0.9550
Resistance levels: 0.9630, 0.9660, and 0.9685
Support levels: 0.9550, 0.9525, and 0.9500
The material has been provided by InstaForex Company – www.instaforex.com