USD/CHF – rejection at diagonal resistance level of 0.99

USD/CHF got rejected at the diagonal resistance level of 0.99 and as we said in our previous analysis started the downward correction.

Price broke below the last upsloping trendline. Short-term support can be found around 0.382 Fibonacci – 0.96264, where another diagonal from the low of the impulse is laying. Generally the outlook is for a deeper correction to 0.5 (0.95417) or 0.618 (0.94570) Fibonacci levels.

Daily chart shows deeper correction is expected as there is 4H bearish divergence on the RSI.

1D chart with support levels. Close below thhe daily orderblock – 0.98015 should accelerate the sell-off. At both Fibonacci correction levels – 0.5 and 0.618, we see support from daily orderblocks.

 Junior Trader Radi Djuma

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