2016-10-28 13:02:38

Review and dynamics
Since the beginning of the month, the pair USD/CHF has grown by 220 points, or 2.3% due to the rise in the USD. The pair has returned to the upper limit of the wide range of 1.0000 (Fibonacci 61.8% after the decline since December 2015 at the level of 1.0300) and 0.9520 (Fibonacci 0%). The pair remains in the ascending channel on the daily chart with the upper limit above the level of 1.0000. Today the pair is traded near resistance level of .9950 (the highs of May and July).

Our opinion
Strong resistance levels are 1.0000 and 0.9950. On the daily chart the indicators OsMA and Stochastic give sell signals.

If the U.S. GDP for Q3 will be below the forecast of+25%, traders will start to close long positions and take profit on the USD, which will cause the fall in the USD in the market.

In this case the pair USD/CHF will go down to support level of 0.9910 (Fibonacci 50.0%), or to support levels of 0.9850 (ЕМА200 on 4-hour chart) and 0.9820 (Fibonacci 38.2%).

Break down of the level of 0.9785 (ЕМА200 and the lower line of the ascending channel on the daily chart) will confirm downtrend in the pair USD/CHF.

However, this scenario is possible only the US GDP will be below the forecast and

Meanwhile, fundamental factors are favourable for the USD. It is likely that the pair USD/CHF will continue to grow.

After the rise in the pair above 1.0000, the price may undergo downward corrective.

Support levels: 0.9910, 0.9850, 0.9820, 0.9785 and 0.9705.
Resistance levels: 0.9950 and 1.0000.

Trading tips
Sell Stop: 0.9890. Stop-Loss: 0.9930. Targets: 0.9850, 0.9820, 0.9785 and 0.9705.
Buy on the market. Stop-Loss: 0.9900. Targets: 0.9950 and 1.0000.

Near strong resistance level of 1.0000
Near strong resistance level of 1.0000

Indicators give sell signals
Indicators give sell signals