Overview:
- The USD/CHF pair has broken a major resistance at the level of 0.9992. The new resistance was calculated and found at the level of 1.0120 and the pair is now approaching it in order to test it. Besides, you have to notice that the 0.9992 price has become a strong support on January 5, 2016. So, the USD/CHF pair will be limited by the levels of 1.000 and 1.0120, so we expect this week a range of 120 pips approximately. Therefore, it will probably start an upward movement at this area and recover again. Thus, the market will indicate a bullish opportunity at the 1.0000 level, and it will be a good sign to buy at this spot with the first target at 1.0085. It will then continue moving towards 1.0105 for forming a double top. Moreover, we look for the weekly target near the strong resistance around the spot of 1.0120 (new project today). On the other hand, if a break of 0.9992 happens, then it will be a good location for placing a stop loss at the 0.9966 level.
Intraday technical levels:
Date: 05/01/2016
Pair: USD/CHF
- R3: 1.0219
- R2: 1.0141
- R1: 1.0080
- PP: 1.0002
- S1: 0.9941
- S2: 0.9863
- S3: 0.9802
