Technical analysis of USD/CHF for December 07, 2016

Overview:

• The trend of the USD/CHF pair’s movement was controversial as it took place in a narrow sideways channel, the market showed signs of instability. According to the previous events, the price is still moving between the levels of 1.0062 and 1.0200. Besides, the weekly resistance and support are seen at the levels of 1.0062 and 1.0200 respectively. Therefore, it is recommended to be cautious while placing orders in this area. So, we need to wait until the sideways channel has completed. Yesterday, the market moved from its bottom at 1.0062 and continued to rise towards the top of 1.0100. Today, on the one-hour chart, the current rise will remain within a framework of correction. However, if the pair fails to pass through the level of 0.6558, the market will indicate a bearish opportunity below the strong resistance level of 1.0150. Since there is nothing new in this market, it is not bullish yet. Sell deals are recommended below the level of 1.0150 with the first target at 1.0062. If the trend breaks the support level of 1.0062, the pair is likely to move downwards continuing the development of a bearish trend to the level 0.9953 in order to test the daily support 2 (horizontal green line). We still prefer a bearish market as the trend will not be able to break the last major resistance of 1.0200. So, the major resistance has already set at the point of 1.0200 for that you should place your stop loss above the last bullish wave.

The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com