Technical analysis of USD/CHF for February 22, 2018

Overview:

• The USD/CHF pair broke resistance at 0.9361 which turned into strong support yesterday. This level coincides with 61.8% of Fibonacci retracement which 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. This suggests that the pair will probably go above the daily pivot point (0.9361) in the coming hours. The USD/CHF pair will demonstrate strength following a breakout of the high at 0.9361. Consequently, the market is likely to show signs of a bullish trend. In other words, buy orders are recommended above 0.9361 with the first target at 0.9409. Then, the pair is likely to begin an ascending movement to 0.9436 marks and further to 0.9469 levels. The level of 0.9469 will act as strong resistance because it forms the double top on the H1 chart. On the other hand, the daily strong support is seen at 0.9328. If the USD/CHF pair is able to break out the level of 0.9328, the market will decline further to 0.9254.

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