FX.co ★ Technical analysis of USD/CHF for February 23, 2017

Overview:

• The USD/CHF pair has faced strong support at the level of 1.0045 because resistance has become support.
• The strong support is already seen at the level of 1.0045 and the pair is likely to try to approach it in order to test it again.
• However, if the pair fails to pass through the level of 1.0045, the market will indicate a bullish opportunity above the new support level of 1.0045.
• Moreover, the RSI starts signaling a downward trend, as the trend is still showing strength above the moving average (100).
• Since the trend is above the 38.2% Fibonacci level, the market is still in an uptrend. From this point, the market is indicating a bullish opportunity above 1.0045.
• So, it will also call for an uptrend in order to continue toward 1.0101 and 1.0158. The daily strong support is seen at 1.0045.
• However, the stop loss should always be taken into account, thus, it will be reasonable to set your stop loss at the level of 0.9917.
• The support levels are seen at 1.0045 and 1.0101. Then, it will be useful to buy above the spot of 1.0045 and 1.0101 with the targets of 1.0158.
• On the other hand, the stop loss should be placed below the price 1.0045.