Since beginning of the month USDCHF moves dynamically up. As an effect of this movement on Friday it reached important resistance area in 0.9944 which coincides with 61.8% Fibonacci correction of previous bearish move.
Friday’s bearish Pin Bar was a first sign of bulls weakening. Today market also creates Pin Bar and if only this day will end on this or similar level, we can expect depreciation in nearest days.
After strong and dynamic gains from last week caused by ECB meeting and words of Mario Draghi on Friday market slowed down. Current movement is a form of bearish correction.
Bullish scenario assumes re-test of broken on Thursday 0.9913 support and level of 38.2% Fibonacci retracement. Rejecting this area should be a signal of continuing gains.
On the other hand if bears will break mentioned area then bearish scenario with potential range in 0.9859 or 0.9837 area will be more probable.
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