FX.co ★ Technical analysis of USD/CHF for May 27, 2016

Overview:

• The trend of USD/CHF pair movement was controversial as it took place in a narrow sideways channel, the market showed signs of instability. According the previous events, the trend is still trading between the levels of 0.9969 and 0.9858. Besides, the daily resistance and support are seen at the levels of 0.9969 and 0.9858 respectively.
• Yesterday, the market moved from its bottom at 0.9884 and continued to rise towards the top of 0.9925. Today, in the one-hour chart, the current rise will remain within a framework of correction. However, if the pair fails to pass through the level of 0.9969, the market will indicate a bearish opportunity below the strong resistance level of 0.9969 (the level of 0.9937 coincides with the double top too). Since there is nothing new in this market, it is not bullish yet. Sell deals are recommended below the level of 0.9969 or 0.9937 with the first target at 0.9858. If the trend breaks the support level of 0.9858, the pair is likely to move downwards continuing the development of a bearish trend to the level 0.9790 in order to test the daily support 1.
• However, it would also be wise to consider where to place a stop loss; this should be set above the second resistance of 1.0037.