2016-11-16 11:34:22

Review and dynamics
It seems that rapid rise in the USD in the foreign exchange markets amid sales of the US government bonds after the victory of Donald Trump is slowing down.

The pair USD/CHF has reached the strong resistance level of 1.0000 (Fibonacci 61.8% after the decline since December 2015 from the level of 1.0300). This is a strong psychological level and the upper line of the range of 0.9520 (Fibonacci 0%) and 1.0000. The upper line of the new descending channel on the daily chart and the upper line of the ascending channel on the weekly chart are crossing the level of 1.0000.

Our opinion
Based on the technical indicators we can assume that in the medium term uptrend in the pair USD/CHF will continue. However, on the short term 4-hour timeframe, the indicators give signals for opening short positions in the short-term downside correction. In case of breaking down of the support level of 1.0000, the pair USD/CHF may go to support levels of 0.9950 and 0.9910 (Fibonacci 50.0% and ЕМА144 the hourly chart).

In downtrend continues, the pair USD/CHF may go down to the support levels of 0.9820 (Fibonacci 38.2%) and 0.9790 (the line of balance and ЕМА200, ЕМА144 on the daily chart).

However, fundamental background is favourable for the rise in the USD and the rise in the pair USD/CHF.

On daily, weekly and monthly charts the indicators OsMA and Stochastic give buy signals with the nearest targets of 1.0090 (highs of March 2016). Long-term targets will be at the levels of 1.0260 (highs of February 2016) and 1.0300 (highs of 2015).

Further movement direction in the USD and in the pair will depend on the economic policy of Donald Trump and the Fed interest rate decisions.

Support levels: 1.0000, 0.9950, 0.9910, 0.9850, 0.9820 and 0.9790.
Resistance levels: 1.0030, 1.0090, 1.1000 and 1.0200.

Trading tips
Buy on the market. Stop-Loss: 0.9980. Targets: 1.0030, 1.0090, 1.1000 and 1.0200.
Sell Stop: 0.9980. Stop-Loss: 1.0010. Targets: 0.9950, 0.9910, 0.9850, 0.9820 and 0.9790.

At the upper line of the channel
At the upper line of the channel

Breakout of the level of 1.0000
Breakout of the level of 1.0000