05.10.201612:42 Forex Analysis & Reviews: Technical analysis of USD/CHF for October 05, 2016

Overview:

• The USD/CHF pair continues moving upwards from the level of 0.9750. This week, the pair rose from the level of 0.9750 to a top around 0.9818. Right now, the price is seen at 0.9768. There are no changes to my technical outlook. The bias remains bullish in nearest term testing 0.9860 or higher. Today, the first resistance level is seen at 0.988 followed by 0.9860, while daily support 1 lies at 0.9750 (61.8% Fibonacci retracement). According to the previous events, the USD/CHF pair is still moving between the levels of 0.9750 and 0.9860; so we expect a range of 110 pips. Furthermore, if the trend manages to break out through the first resistance level at 0.9797, we should see the pair climbing towards the double top (0.9818) to test it. Therefore, buy above the level of 0.9797 with the first target at 0.9818 and further to 0.9860 in order to test the daily resistance 1. Additionally, the level of 0.9860 is a good place to take profit because it will form a new double top. On the other hand, in case a reversal takes place and the USD/CHF pair breaks through the support level of 0.9750, a further decline to 0.9707 can occur which will indicate a bearish market. Overall, we still prefer the bullish scenario which suggests that the pair will stay above the zone of 0.9750 today