USD/CHF: Bears have taken the charge, let’s go for sell side

By looking at the daily technical chart of USD/CHF we can see that pair is heading towards south side with a complete bearish momentum where bears are leading and playing at front foot. From technical prospective we can see that a short term downtrend line was lying. Bears have taken the charge and trading and sustaining below the moving average lines which is providing us bearish signal on the daily basis.

Overall bears are making successively lower lows and lower highs and short term to intermediate term trend is down so in an downtrend market sell on high will be profitable strategy. Every correction should be converted as selling opportunity. Presently we can see on the daily chart after making the low of 0.9700 level pair bounced up till 0.9952 level and after arriving at that level we have seen sell off it means the pair is in completely downtrend market. 

Well the way bears are taking up till the time it seems like bears will test the 0.9700 level once again. Presently pair is sustaining below the 200 SMA line and heading south side which is a negative sign itself for bears.

Overall pair is trading below its major and minor moving average on the chart. It seems like bulls lost their control and bears got the control on the pair again. From technical prospective we can see that head and shoulder pattern is in process of formation which is providing us bearish signal. Pair is receiving strong supply pressure from the key resistance level i.e. previous swing’s high.

The way bears have taken the charge it seems like, they are approaching the 0.9700 level in near term. A daily closing below the 0.9750 level will open the way towards 0.9700 level and 0.9600 level in near term. Overall odds are in favor of bears and intraday bias remains bearish on pair as long as 0.9950 levels remains intact..We will receive further bearish confirmation once pair trade and settles below the 0.9750 level.

A bearish divergence on the MACD indicator is the recent development on the daily chart.RSI indicator has turned down from overbought territory to negative territory and a bearish crossover on the MACD indicator has occurred which is also a recent development on the chart. The 0.9950 is key resistance level followed by 1.000 level whereas 0.9750 level which is a key support level followed by 0.9700 level.