2016-11-22 11:28:41

Review and dynamics
Significant rise in the USD in the past 10 trading sessions, has suspended yesterday, as investors took profit in the long positions on the USD.

The pair USD/CHF has broken the strong resistance level of 1.0000 (Fibonacci 61.8% after the decline since December 2015 at the level of 1.0300) and reached the new local highs near the level of 1.0100 (highs of March).

The pair USD/CHF has broken the upper limit of the range of 0.9520 (Fibonacci 0%) and 1.0000 and remains in the ascending channel on the daily chart.

Our opinion
Although investors have already incorporated probability of the rate hike in the USA into the prices, positive trend in the USD continues.

The pair USD/CHF can undergo short-term downward correction.

On the hourly and 4-hour charts the indicators OsMA and Stochastic give sell signals. On the daily chart the indicators also suggest to open short positions.

It is likely decline that the price will go down to support level of 1.0000 (Fibonacci 61.8% and ЕМА200 on the hourly chart).

In the case of breakdown of support level of 1.0000, the pair USD/CHF may continue go down to support levels of 0.9950 and 0.9910 (Fibonacci 50.0%).

If downtrend continues, the pair USD/CHF may decline to the support levels of 0.9820 levels (Fibonacci 38.2%) and 0.9800 (the balance line and ЕМА200, ЕМА144 on the daily chart).

Meanwhile, it is likely that the USD will continue to rise, as well as the pair USD/CHF.

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

Further trend in the pair USD/CHF will depend on the economic policy of Donald Trump and, movement in the USD.

Support levels: 1.0000, 0.9950, 0.9910, 0.9850, 0.9820 and 0.9800.
Resistance levels: 1.0100, 1.0200, 1.0260 and 1.0300.

Trading tips
Buy Stop: 1.0110. Stop-Loss: 1.0090. Targets: 1.0200, 1.0260, 1.0300.
Sell Stop: 1.0060. Stop-Loss: 1.0110. Targets: 1.0000, 0.9950, 0.9910, 0.9850 and 0.9800.

Near the local highs of 1.0100
Near the local highs of 1.0100

Indicators show probability of correction
Indicators show probability of correction