06.10.201611:37 Forex Analysis & Reviews: Technical analysis of USD/CHF for October 06, 2016

Overview:

• The USD/CHF pair will continue rising from the level of 0.9733 in the long term. Importantly, the support is established at the level of 0.9733 which represents the daily pivot point on the H1 chart. Besides, it should be noted that the ratio of 50% Fibonacci retracement coincides with the levels of 0.9733. Since the trend is above the 50% Fibonacci level, the market is still in an uptrend. From this point, the price is likely to form a double bottom around the spot of 0.9733 on the same time frame. Accordingly, the USD/CHF pair is showing signs of strength following a breakout of the maximum at 0.9750. So, buy above the level of 0.9750 with the first target at 0.9806 in order to test the daily resistance 2. Moreover, the RSI is still signaling that the trend is upward as it remains strong above the moving average (100). This suggests that the pair will probably go up in coming hours. If the trend manages to break the level of 0.9826, then the market will call for a strong bullish movement towards the objective of 0.9828 today. The level of 0.9828 is a good place to take profits because it represents the last week's top. On the other hand, in case a reversal takes place and the USD/CHF pair breaks through the support level of 0.9730, a further decline to 0.9661 can occur. It would indicate a bearish market.