Weekly
   •   Last Candlesticks pattern: Shooting star
   •   Time of formation: 7 Mar 2017
   •   Trend bias: Sideways
Daily
   •   Last Candlesticks pattern: Morning star
   •   Time of formation: 9 May 2017
   •   Trend bias: Near term up
USD/CHF – 0.9708
The greenback only recovered to 0.9808 before dropping again, adding credence to our bearish view that early decline from 1.0344 top (2016 high) is still in progress and downside bias remains for further fall to 0.9650, then towards 0.9600, however, near term oversold condition should prevent sharp fall below 0.9550 support and price should stay above psychological level at 0.9500 support, bring rebound later.
On the upside, whilst initial recovery to the Tenkan-Sen (now at 0.9738), then towards said resistance at 0.9808 cannot be ruled out, reckon previous support at 0.9859 (now resistance) would limit upside and bring another decline later. Only a daily close above the Kijun-Sen (now at 0.9884) would defer and suggest a temporary low is formed, bring a stronger rebound to the lower Kumo (now at 0.9969) but price should falter below 1.0000 and bring another selloff.
Recommendation: Sell at 0.9855 for 0.9685 with stop above 0.9955
On the weekly chart, as the greenback has remained under pressure after forming a long black candlestick last month, adding credence to our bearish view that early erratic fall from 1.0344 top is still in progress, hence bearishness remains for this move to bring retracement of early upmove to 0.9600, then towards previous support at 0.9550, however, reckon downside would be limited to 0.9500 and another previous support at 0.9444 should remain intact, risk from there has increased for a strong rebound later.
On the upside, although initial recovery to 0.9808 resistance can not be ruled out, reckon 0.9850-60 would limit upside and bring another decline later. A weekly close above the Tenkan-Sen (now at 0.9888) would defer and risk a stronger rebound to 0.9940-50 but 1.0006-07 (current level of the Kijun-Sen and previous resistance) should limit upside and price should falter well below 1.0100, bring another decline later. Above 1.0100 would signal low is formed instead and suggest the aforesaid decline from 1.0344 has ended, bring test of 1.0171 resistance next.
