Review and dynamics
Today’s rise in the USD in the market has caused the rise in the pair USD/CHF, which has grown by 100 points since the beginning of the European session, opening the trading day with the gap up.
The pair USD/CHF has returned to the balance line and resistance level of 0.9775 (ЕМА200, ЕМА144 on the daily chart). Breakout of the support level of 0.9705 (Fibonacci 23.6% after the decline since December 2015 at the level of 1.0300 and the lower line of the ascending channel on the daily chart) was false.
The pair has returned to the middle of the range between the levels 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 near the level of 1.0100.
Technical indicators show that uptrend in the pair USD/CHF will continue. In case of breakout of the resistance level of 0.9775 the nearest target will be at the level of 0.9820 (Fibonacci 38.2%). If the rise continues, long-term targets will be at the levels of 0.9910 (Fibonacci 50.0%), 0.9950 and 1.0000.
As an alternative scenario the price can break down support level of 0.9705 and continue to decline to the levels of 0.9635, 0.9600 and 0.9520.
The indicators OsMA and Stochastic give mixed signals.
Further movement of the USD and the pair USD/CHF will depend on the results of election in the United States. The impact of the election on the global financial markets is extremely high. In this situation technical analysis goes into the background.
Support levels: 0.9705, 0.9635, 0.9600 and 0.9520.
Resistance levels: 0.9775, 0.9820, 0.9850, 0.9910, 0.9950 and 1.0000.
Sell Stop: 0.9740. Stop-Loss: 0.9780. Targets: 0.9705, 0.9635, 0.9600, and 0.9520.
Buy Stop: 0.9810. Stop-Loss: 0.9770. Targets: 0.9850, 0.9910, 0.9950 and 1.0000.
At the line of 0.9775
In the downtrend