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

Overview:

• Yesterday the market saw a lot of volatility because of the UK vote. Therefore, the USD/CHF pair continues to move upwards from the level of 0.9863. Yesterday, the pair rose from the level of 0.9521 to a top around 0.9789. Currently price is seen at the level of 0.9739. Today, the first resistance level is seen at 0.9789 followed by 0.9855, while daily support 1 is seen at 0.9686 (38.2% Fibonacci retracement). Amid to the previous events, the USD/CHF pair is still moving between the levels of 0.9686 and 0.9789; This would suggest a bearish market because the RSI indicator is still in a positive spot and does not show any trend-reversal signs. The pair is expected to rise higher towards at least 0.9789 so as to test the daily resistance. Moreover, if a breakout takes place at the resistance level of 0.9855, then the trend will continue for a strong bullish market towards the next target 0.9855. Overall, we still prefer the bullish scenario which suggests that the pair will stay above the zone of 0.9686.