FX.co ★ Technical analysis of USD/CHF for October 6, 2015

Overview:

• Today, the USD/CHF pair has risen sharply from the 0.9722 towards 0.9760. Now, the price is set at the level of 0.9751 to act as a daily pivot point. It should be noted that the volatility is very low for that the USD/CHF pair is expected to move between 0.9722 and 0.9805 in coming hours. In addition, the price has been set above strong support at the levels of 0.9722 and 0.9685, which coincide with the 61.8% and 50% of Fibonacci retracement in the H1 chart.
• Thereupon, the pair has already found a strong support area at the levels of 0.9722 and 0.9685. Now it is making attempts to test it. Therefore, here is a possibility that the market is going to start showing bearish signs. Then, sell at 0.9805 with the first target at 0.89703 in the short term. In order to indicate a bullish opportunity above the spot of 0.9722 and 0.9685, it will be a good sign to buy above 0.9722 and 0.9685 with the first target at 0.9775. It is equally important that it will call for uptrend in order to continue bullish trend towards 0.9805.
• On the other hand, it is also noteworthy that the price is likely to form strong resistance at at 0.9805. Accordingly, Amid the saturation around 0.9805, a rebound is likely to take place. Hence, there is a possibility that the market is going to start showing bearish signs. Then, sell at 0.9805 with the first target at 0.89703 in the short term.