05.10.201608:01 Forex Analysis & Reviews: Technical analysis of USD/CHF for October 05, 2016

Long-term review

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USD/CHF is expected to trade with a bullish bias above 0.9750. Despite the recent consolidation, the pair is still in an uptrend. Meanwhile, a support base at 0.9750 has been formed, and the downside room should be limited by this level. Meanwhile, the 50-period moving average is heading upward, and maintains the bullish bias. Additionally, the relative strength index lacks downward momentum. U.S. government bonds weakened again with the benchmark 10-year Treasury yield advancing to 1.683% from 1.624% Monday.

The firmer U.S. dollar caused gold to plunge 3.3% to $1,267 an ounce, the biggest slide since 2013. The yellow metal was last seen at levels below $1,300 on June 24. It is now below its 200-day moving average, the first time since early February. Silver sank 5.1% to $17.78 an ounce.

Therefore, as long as 0.9750 holds on the downside, look for a new rise to 0.9830 at first. A break above this level would open the path to further advance toward 0.9900 as possible.

Resistance levels: 0.9830, 0.9900, 0.9945

Support levels: 0.9715, 0.9690, 0.9645

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