28.10.201610:58 Forex Analysis & Reviews: Technical analysis of USD/CHF for October 28, 2016

Overview:

• The USD/CHF pair reached a new maximum around the spot of 0.9940. Right now, the USD/CHF pair has faced minor resistance at the levels of 0.9943 on 1H chart. Today price may reach one more maximum at level of 0.9943 and then start new correction towards the level of 0.9910 (at least). We expect the USD/CHF pair to continue moving in a bullish trend from the support levels of 0.9910 and 0.9900. Currently, the price is in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. Immediate support is seen at 0.9910, which coincides with a ratio of 38.2% Fibonacci. Consequently, the first support is set at the level of 0.9910. So, the market is likely to show signs of a bullish trend around the spot of 0.9910/0.9900. In other words, buy orders are recommended above the 0.9910 price with the first target at the level of 0.9967. Furthermore, if the trend is able to break out through the first resistance level of 0.9967, we should see the pair climbing towards the double top (0.9998) to test it. However, stop loss should always be taken into account, accordingly, it will be of beneficial to set the stop loss below the second support of 0.9889.