USD/CHF: Bears are playing at front foot and approaching 0.9250 level
|Overview: USD/CHF pair is turning down once again after arriving at 0.9800 levels we have seen 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 0.9367 level already.
Currently, pair is trading below major and minor EMA lines and the outlook insists us to have a bearish view now and it will further confirm once we see a daily closing below the 0.9300 level. In our previous report also we mentioned to sell the pair around 0.9850 for the target of 0.9600 and 0.9500 and our targets have been achieved easily so we are expecting that readers must have made a profit from this move.
Technical Analysis: From a 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 a 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 that go for short and add more shorts below 0.9250 level. Odds are in favor of bears and intraday bias remains bearish on the pair as long as 0.9680 levels remain 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 a bearish signal.
What next: The 0.9500 is key resistance level followed by 0.9650 level whereas 0.9250 level which is a key support level followed by 0.9100 level.
Trade idea: Based on the chart and study above we can suggest go for sell at current levels 0.9370 for the target of 0.9250 and 0.9100 stop loss is 0.9550.
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