FX.co ★ Technical analysis of USD/CHF for May 24, 2016

Overview:

• As expected the USD/CHF pair continues to move upwards from the level of 0.9866. Yesterday, the pair rose from the level of 0.9866 to the top around 0.9922. Today, the first resistance level is seen at 0.9967 followed by 1.0014, while daily support 1 is seen at 0.9866. Currently, the price is in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. As the price is still above the moving average (100), immediate support is seen at 0.9866. Consequently, the first support is set at the level of 0.9866. So, the market is likely to show signs of a bullish trend around the spot of 0.9866. In other words, buy orders are recommended above the 0.9866 level with the first target at the level of 0.9967. Furthermore, if the trend is able to breakout through the first resistance level of 0.9967. We should see the pair climbing towards the double top (1.0014) to test it. Also, it should be noted that the price spot of 0.9967 - 1.0014 remains a significant resistance zone. However, it would also be wise to consider where to place a stop loss; this should be set below the second support of 0.9796.