The USD/CHF pair broke resistance at the 0.9738 level, which turned into strong support yesterday. This level coincides with 50% of Fibonacci retracement that is expected to act as major support today. Equally important, the RSI is still signaling that the trend is upward, while the moving average (100) is headed to the upside. Accordingly, the bullish outlook remains the same as long as the EMA 100 is pointing to the uptrend.
Since the trend is above the 50% Fibonacci level, the market is still in an uptrend. Therefore, the USD/CHF pair is continuing with a bullish trend from the new support of 0.9738. The current price is set around the spot of 0.9789 that acts as a daily pivot point seen at 0.9789. Equally important, the price is in the bullish channel. According to the previous events, we expect the USD/CHF pair to move between 0.9738 and 0.9862. Therefore, strong support will be formed at the level of 0.9789 providing a clear signal to buy with the target seen at 0.9862. If the trend breaks the support at 0.9862 (the first resistance), the pair will move upwards continuing the development of the bullish trend to the level of 0.9902 in order to test the daily resistance 2. In the same time frame, resistance is seen at the levels of 0.9862 and 0.9902. However, the stop loss should always be taken into account for that it will be reasonable to set your stop loss at the level of 0.9738 (below the support 2).
The material has been provided by InstaForex Company – www.instaforex.com Source: Instaforex.com
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The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com
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