All our downside targets which we predicted in the previous analysis have been hit. USD/CHF is still under pressure and expected to continue the downside movement. The pair has clearly reversed down, and is likely to post a new decline. The 20-period moving average is also reversing down, and has just broken below the 50-period one (a negative signal). In addition, the relative strength index is heading downward, and calls for new weaknesses. In which case, as long as 0.9950 holds on the upside, look for a new pullback to 0.9870 and 0.9845 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 point 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 at 0.9950, take profit at 0.9870.
Resistance levels: 0.9985, 1.0005, and 1.0030
Support levels: 0.9870, 0.9845, and 0.9800
