FX.co ★ Technical analysis of USD/CHF for April 29, 2016

Overview:

• The USD/CHF pair faced strong support at the level of 0.9648 because support became resistance. So, the first resistance is seen at the level of 0.9648 and the pair is likely to try to approach it in order to test it again. The level of 0.9648 represents a daily pivot point for that it is acting as minor resistance today. Furthermore, the USD/CHF pair is continuing to trade in a bearish trend from the new support level of 0.9648. Currently, the price is in a bearish channel. According to the previous events, we expect the USD/CHF pair to move between 0.9648 and 0.9510. So, the market is likely to show signs of a bearish trend around the spot of 0.9648. In other words, sell orders are recommended below the spot of 0.9648 with the first target at the level of 0.9510; and continue towards 0.9498 (double bottom). This would suggest a bearish market because the moving average (100) is still in a negative area and does not show any trend-reversal signs at the moment. Moreover, if the pair succeeds to pass through the level of 0.9498, the market will indicate a bearish opportunity below the level of 0.9498 in order to continue towards the next objective around the spot of 0.9437. However, if a breakout happens at the resistance level of 0.9650, then this scenario may be invalidated.