Review and dynamics
Efforts of the SNB to weaken the national currency and the rise in the USD after the election of a new President of the United States have led to the increase in the pair USD/CHF to the new highs since February at the level of 1.0200.
However, profit taking in long positions the pair USD/CHF started to decline at the beginning of December. The pair dropped by over 100 points. Although investors have already incorporated the rate hike in the USA into the prices of the USD, the American currency continues to grow.
The pair GBP/USD may undergo downward correction. On the daily and 4-hour charts the indicators OsMA and Stochastic give sell signals. It is likely that the pair will decline to support level of 1.0000 (Fibonacci 61.8% and ЕМА200 on 4-hour chart).
In the case of breakdown of support level of 1.0000, the pair USD/CHF may continue to decline to support levels of 0.9950 and 0.9910 (Fibonacci 50.0%) or 0.9850 (ЕМА144, ЕМА200 on the daily chart), and 0.9820 (Fibonacci level of 38.2%).
On the weekly and monthly charts the indicators OsMA and Stochastic give buy signals. The pair USD/CHF remains in the wide ascending channel on the daily chart with the upper limit near the level of 1.0300 (Fibonacci 100% after the decline since December 2015 at the level of 1.0300).
In case of the rise in the pair further targets will be at the levels of 1.0260 (highs of February 2016) and 1.0300 (highs of 2015). Further movement in the pair USD/CHF will depend on the economic policy of Donald Trump and the trend in the USD and the actions of the SNB.
Support levels: 1.0060, 1.0000, 0.9950, 0.9910, 0.9850 and 0.9820.
Resistance levels: 1.0200, 1.0260 and 1.0300.
Buy Stop: 1.0120. Stop-Loss: 1.0090. Targets: 1.0200, 1.0260 and 1.0300.
Sell on the market. Stop-Loss: 1.0120. Targets: 1.0060, 1.0000, 0.9950, 0.9910, 0.9850and 0.9820.
In the ascending channel
Correction down to 1.0000