USD/CHF, D1

On the daily chart, the USD/CHF pair is moving downwards, reversing at 0.9210 (0.0% correction): currently, the price is close to 0.8970 (38.2% correction), the breakdown of which will allow it to reach the 0.8895 area (50.0 correction %) and 0.8815 (61.8% correction), for which it will be necessary to overcome the ascending fan. If quotes re-consolidate above 0.9060 (23.6% correction) and the middle line of Bollinger Bands (0.9095), they will be able to return to the area of 0.9210.

Technical indicators do not give a single signal: Bollinger Bands are directed upward, the MACD histogram is increasing in the positive zone, and Stochastic is reversing downwards.

USD/CHF, W1

On the weekly chart, the USD/CHF pair reversed downwards from 0.9165 (38.2% correction) and may continue its downward trend to the area of 0.8955 (23.6% correction) and 0.8895 (middle line of Bollinger Bands). The key “bullish” level is 0.9165, and consolidation above it again will allow the quotes to rise to 0.9340 (50.0% correction).

Technical indicators do not give a single signal: Bollinger bands reverse horizontally after a decline, and the MACD histogram is preparing to move into the positive zone but Stochastic reversed downwards.

Support and resistance

Continuation of the negative dynamics seems more likely: if the consolidation below 0.8970 (correction 38.2%, D1), it will continue to the area of 0.8895 (correction 50.0%, D1, the middle line of Bollinger bands, W1) and 0.8815 (correction 61.8 %, D1), however, in the event of a breakout of 0.9095 (the middle line of Bollinger bands, D1), growth can resume to 0.9210 (0.0% correction, D1) and 0.9340 (50.0% correction, W1).

Resistance levels: 0.9095, 0.9210, 0.9340.

Support levels: 0.8970, 0.8895, 0.8815.

Trading tips

Short positions may be opened below 0.8970 with the targets at 0.8895, 0.8815 and stop loss around 0.9020. Implementation time: 5–7 days.

Long positions may be opened above 0.9095 with the targets at 0.9210, 0.9340 and stop loss around 0.9010.