USD/CHF is under pressure. The pair confirmed an intraday bearish reversal after the downside breakout of its key horizontal level at 1.0040 (a psychological level). The 20-period and 50-period moving averages are now above the prices and should maintain the strong selling pressure. Besides, the relative strength index is negative, without showing any reversal signal.
In conclusion, below 1.0040, look for a new decline to 0.9965 and 0.9935 in extension.
Chart Explanation: The black line shows the pivot point. The present price above the pivot point indicates a bullish position, and the price below the pivot points indicates a 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: 1.0040, Take Profit: 1.0070
Resistance levels: 1.0070, 1.0095, and 1.0145
Support levels: 0.9965, 0.9935, and 0.9900
The material has been provided by InstaForex Company – www.instaforex.com