Scenario

Timeframe - Intraday

Recommendation - SELL STOP

Entry Point - 0.9560

Take Profit - 0.9500, 0.9472

Stop Loss- 0.9593

Key Levels - 0.9462, 0.9492, 0.9570, 0.9684, 0.9785, 0.9900

Alternative scenario

Recommendation - BUY STOP

Entry Point - 0.9694

Take Profit - 0.9775

Stop Loss - 0.9657

Key Levels - 0.9462, 0.9492, 0.9570, 0.9684, 0.9785, 0.9900

USD/CHF, D1

On the daily chart, the pair is trading in the lower Bollinger band. The price remain below its moving averages that start turning down. The RSI is about to retest its most recent support on the border of the oversold zone. The Composite turned down as it failed its longer MA.

USD/CHF, H4

On the 4-hour chart, the pair is falling towards the lower MA of Bollinger Bands. The price remains below its moving averages that are directed down. The RSI turned down in the Bearish zone below the 60 mark. The Composite is falling as well.

Key levels

Support levels: 0.9570 (local lows), 0.9492 (October 2015 lows), 0.9462 (September 2010 lows).

Resistance levels: 0.9684 (local highs), 0.9785 (April highs), 0.9900 (August 2015 highs).

Trading tips

Pair’s fall is likely to continue towards October 2015 lows at 0.9500.

Open short positions from the level of 0.9560 with targets at 0.9500, 0.9472 and stop-loss at 0.9593. Validity – 1-2 days.

Long positions can be opened from the level of 0.9694 with the target at 0.9775 and stop-loss at 0.9657. Validity – 1-2 days.