Morning Market Update – USD/CHF

Intraday bias in USD/CHF remains neutral as a corrective action that looks to be the next move from 0.9704 is still in progress. The near term outlook stays bearish as long as 0.9704 resistance holds. When decline from current levels resumes, we’d start to look for bottoming signal again as it approaches 0.9443 key support level. However, considering the condition seen in the four-hour chart, a break of 0.9674 will indicate near term reversal and turn the outlook bearish for the 0.9674 support level next.

Considering the bigger picture, USD/CHF is still bound in medium term range for the moment. Consolidative trading would likely continue and medium term outlook remains neutral. A break of 0.9443 key support is needed to confirm the underlying bearish momentum in the pair. Meanwhile, downside attempts should be contained by key support levels. However, sustained break will carry larger bearish implication and target 0.9610 handle.

As USD/CHF’s bearish momentum continues, we favor a long term bearish bias that continues to move in the range between the 0.9714 and the 0.9672 retracement levels. we believe that will reach and retest the 0.9672 level. We’ll have a clear direction only after a valid breakout from this extended sideways movement.

The down days are suggested by strong bear candles, while any recovery up-days are beset with struggles to make any headway and turn into consolidation days. The recent candle was another indication where the bears continue to make sustainable impact, before once more resuming the decline.

The USD/CHF pair bounced downwards strongly after testing resistance level, to settle around 0.9704 barrier again. The stochastic keeps declining to support the chances of continuing the bearish bias in the upcoming sessions.

Therefore, we will keep our bearish overview on the intraday on a short term basis, reminding you that will keep focus on our next main target, while holding below the resistance area represents key condition to continue the suggested decline.

Expected trading range for today is between 0.9641support and 0.9704 resistance.

Expected trend for today: Bearish

 
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