USD/CHF: Rebound from Strong Resistance Level of 0.9775
Movement direction in the pair USD/CHF in April is similar to the movement in the pair USD/JPY.
Since mid-April the pair USD/CHF has significantly strengthened and won back half of the losses of the previous month.
On the daily chart the pair USD/CHF has closely approached resistance level of 0.9775 (ЕМА200). Today, on Monday the currency market is undergoing correction against Friday’s movement, including the pair USD/CHF. However, on Tuesday, the pair USD/CHF may resume the rise
On 4-hour, and daily charts the indicators OsMA and Stochastic give mixed signals.
When the indicators on 4-hour chart start to give buy signals, buy positions will be advisable. In this case, it is recommended to place limit orders to buy from the levels of 0.9710, 0.9680 with stop-loss below the level of 0.9660
Consolidation above the level of 0.9800 (ЕМА144 on the daily chart) may trigger further rise in the pair to the upper limit of the channel on the daily chart near the level of 0.9950.
As an alternative scenario the pair may continue to decline with the targets of 0.9565, 0.9490, 0.9400, 0.9300 and 0.9160.
However, further decline in the pair is restricted by strong support level of 0.9565 (ЕМА200 on the weekly chart), from which the price repeatedly rebounded in August and October 2015, and which was followed by the significant rise.
Remember that SNB may carry out intervention in the currency market in case of significant rise in Swiss Franc.
Support levels: 0.9710, 0.9680, 0.9660, 0.9620, 0.9565, 0.9490 and 0.9400.
Resistance levels: 0.9775 and 0.9800.
Trading tips
Buy Stop: 0.9785. Stop-Loss: 0.9740. Targets: 0.9800, 0.9860, 0.9900, 0.9950 and 1.0000.
Sell Stop: 0.9730. Stop-Loss: 0.9780. Targets: 0.9710, 0.9680, 0.9660, 0.9620, 0.9565 and 0.9500.
