FX.co ★ Technical analysis of USD/CHF for May 04, 2016

Overview:

• The USD/CHF pair broke resistance at the level of 0.9524, which acts as support now. Thus, the pair has already formed minor support at 0.9524.The strong support is seen at the level of 0.9443 because it represents the weekly support 1. Equally important, the RSI is still calling for an uptrend. Therefore, the market indicates a bullish opportunity at the level of 0.9524 on the H1 chart. Therefore, it is recommended to buy above the minor support of 0.9524 with the first target at 0.9577 (this price is coinciding with the ratio of the 38.2% Fibonacci), and continue towards 0.9619 (the weekly resistance 1). On the other hand, if the price closes below the minor support, the best location for the stop loss order is seen below 0.9524. Hence, the price will fall into the bearish market in order to go further towards the strong support at 0.9485 to test it again. Furthermore, the level of 0.9443 will form a double bottom.

Intraday technical levels:

• R3: 0.9719
• R2: 0.9618
• R1: 0.9618
• PP: 0.9577
• S1: 0.9524
• S2: 0.9485
• S3: 0.9443