Technical analysis of USD/CHF for January 12, 2017

Overview:

The USD/CHF pair continues to move downwards from the level of 1.0249. The pair dropped from the level of 1.0249 (this level of 0.9965 coincides with the double top) to the bottom around 1.0075. Today, the first resistance level is seen at 1.0173 followed by 1.0249, while daily support 1 is found at 1.0040. Besides, the level of 1.0040 represents a weekly pivot point for that it is acting as major support this week. Amid the previous events, the USD/CHF pair is still in a downtrend, because it is trading in a bearish trend from the new resistance line of 1.0173 towards the first support level at 1.0040 in order to test it. If the pair succeeds to pass through the level of 1.0040, the market will indicate a bearish opportunity below the level of 1.0040. Sell orders are recommended below the area of 1.0040 with the first target at the level of 1.0000; and continue towards 0.9946. However, if a breakout happens at the resistance level of 1.0249, then this scenario may be invalidated.