Since the beginning of February the pair USD/CHF has sharply decline reaching the key support level of 0.9875 (ЕМА144 on the daily chart). The decline amounted to 400 points. At the moment the pair is near support level of 0.9925 (lower line of the upward channel on the daily chart), trading in the narrow range at the opening price of the trading day. The indicators OsMA and Stochastic give contradicting signals. On the daily chart they recommend to open short positions, while on the four-hour chart that give signals to open long positions. It is highly possible that prior to the speech by Janet Yellen on Wednesday, the pair USD/CHF will remain in the range of 0.9875 и 0.9950.
If Janet Yellen confirms intentions of the US Fed to stick to the policy of monetary tightening, the pair USD/CHF will grow and return to the upward channel with the upper level of 1.0260 on the daily chart.
Otherwise, the pair can reach support level of поддержки 0.9800 (ЕМА200 on the daily chart). Consolidation of the price below this level can trigger further decline to the level of 0.9575 (ЕМА200 and ЕМА144 on the weekly chart).
This is the scenario proposed by the indicators OsMA and Stochastic on the weekly chart. However, do not forget about a probability of unexpected interference in trades by the national bank of Switzerland, which can change the situation.
Support levels: 0.9875, 0.9800, 0.9750 and 0.9575.
Resistance levels: 1.0000, 1.0125, 1.0195, 1.0200, 1.0260.
Sell Stop: 0.9890. Stop-Loss: 0.9930. Targets: 0.9875, 0.9830, 0.9800 and 0.9750.
Buy Stop: 0.9960. Stop-Loss: 0.9920. Targets: 1.0000, 1.0100, 1.0125, 1.0195 and 1.0260.