FX.co ★ Technical analysis of USD/CHF for January 24, 2017

Overview:

• The USD/CHF pair broke support which turned into strong resistance at the level of 1.0026 yesterday. The level of 1.0026 coincides with the ratio of 23.6% Fibonacci, which is expected to act as major resistance today. The Relative Strength Index (RSI) is considered oversold because it is below 70. The RSI is still signaling that the trend is upward as it is still strong below the moving average (100). This suggests that the pair will probably go down in coming hours. Accordingly, the market is likely to show signs of a bearish trend. In other words, buy orders are recommended below 1.0026 with the first target at the level of 0.9958. From this point, the pair is likely to begin a descending movement to the point of 0.9958 and further to the levels of 0.9930 abnd 0.9900. The level of 0.9900 will act as strong support. On the other hand, if a breakout happens at the resistance level of 1.0069, then this scenario may become invalidated.