On the H1 chart:
- Considering the previous events, the price of the USD/CHF pair is going to move between the ratio of 78.6% Fibonacci retracement levels at the level of 0.9441 and 38.2% Fibonacci retracement at the 0.9437 level. In particular, the USD/CHF pair will be able to form a double bottom at 0.9437. Therefore, it will be a good idea to sell below 0.9441 with the first target of 0.9526. It will call for a downtrend in order to continue its bearish movement towards 0.9437.
On the H4 chart:
- According to the previous events, the USD/CHF pair has still been moving between 0.9420 and 0.9688. It should be noted that the key level is set at the level of 0.9426 because it represents strong support and it coincides with the last weekly pivot point. Equally important, the double bottom will be formed at the 0.9437 level but it seems the price is going to break this level in order to continue towards the level of 0.9566. As it is known, history will probably repeat itself at this level again. Hence, it will be a good idea to buy above the price of 0.9420 with the first target of 0.9566 in order to test the daily pivot point. Additionally, if the trend can break the daily pivot point, then it might resume to 0.9688 (strong resistance). Notwithstanding, check out the market volatility before investing, because the sight price may have already been reached and scenarios become invalidate.
The material has been provided by InstaForex Company – www.instaforex.com