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

USD/CHF is clearly trending downwards printing lower lows and lower highs. On the 22nd of April, pair rejected the downtrend trend line and at the same time formed a bearish divergence on the RSI oscillator signaling on a potential continuation of a downtrend.

The Fibonacci applied to the first corrective wave after the major support breakout (0.9700 area) shows the downside target at the 161.8% retracement. Consider selling USD/CHF on small pullbacks up towards the R1 (0.9690) targeting the S2 (0.9380) and stop loss well above the R1.

Support: 0.9500, 0.9380

Resistance: 0.9690, 0.9800