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06.12.201612:14 Forex Analysis & Reviews: Technical analysis of USD/CHF for December 06, 2016

Long-term review

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Overview:

The USD/CHF pair:
The market showed signs of instability when it reached the top of 1.0191. The daily resistance and support are seen at the levels of 1.0191 and 1.0054 respectively. The trend of USD/CHF pair movement was controversial as it took place in a narrow sideways channel, the market showed signs of instability. Amid the previous events, the price is still moving between the levels of 1.0191 and 1.0054. In consequence, it is recommended to be cautious while placing orders in this area. We should wait until the sideways channel has completed. On the H4 chart, the price spot of 1.0191 remains a significant resistance zone. Therefore, there is a possibility that the USD/CHF pair will move to the downside and the fall structure does not look corrective. Resistance is seen at the level of 1.0191 today. So, sell below 1.0191 with the first target at 1.0100. In overall, we still prefer the bearish scenario as long as the price is below the level of 1.0191. Furthermore, if the USD/CHF pair is able to break out the bottom at 1.0100, the market will decline further to 1.0053. However, if a breakout takes place at the resistance level of 1.0230, then this scenario may become invalidated. Remember to place a stop loss; it should be set below the second support of 1.0266.

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