FX.co ★ Technical analysis of USD/CHF for May 03, 2016

Overview:

• The USD/CHF pair dropped from the level of 0.9509 to the bottom around 0.9443. Today, the first resistance level is seen at 0.9509 followed by 0.9578, while daily support 1 is seen at 0.9425. Additionally, the price is in a bearish channel now. Amid the previous events, the pair is still in a downtrend. From this point, the USD/CHF pair is continuing in a bearish trend from the new resistance of 0.9509. Thereupon, the price spot of 0.9509 remains a significant resistance zone. Therefore, a possibility that the USD/CHF pair will have downside momentum is rather convincing and the structure of a fall does not look corrective. In order to indicate a bearish opportunity below 0.9509, sell below 0.9509 with the first targets at 0.9425. If the trend is able to break the first support at the level of 0.9425, then the market will continue falling towards the next support at 0.9369. However, the stop loss should be located above the level of 0.9578.