Currenttrend
Following bears’ failure to break down resistance level of 0.9240 at the beginning of the month the pair returned to the downward channel. Now the pair USD/CHF is trading below the level of 38.2% (0.9100), Fibonacci retracement, which has been acting as a support level for a few days. If the pair manages to consolidate below this level, the decline can reach the level of 0.9000. Technical indicators also show the decline. Histogram and the signal line of MACD indicator are in the negative zone. The signal line is directed downward being inside the histogram. Stochastic is below the medium level and its both lines are directed downward.
Support and resistance
The nearest resistance level of 0.9100 is the key level of the “bulls.” Breakdown of this level will give them a chance to regain losses. Main support levels of the bears are 0.9075, 0.9050 and 0.9000.
Trading tips
It is advisable to open long positions above the level of 0.9100 with profit taking at the level of 0.9150. Limited orders to sell can be placed at the same level. Short positions are recommended below the level of 0.9075.
Ilya Lashenko
Analyst of LiteForex Group of Companies
