USD/CHF: technical analysis

USD/CHF, H4

On the 4-hour chart, the pair is trading in the lower Bollinger band. The price remains on the level with the EMA14, EMA65 and EMA130, and above the SMA200 which is directed up. The RSI is about to test from below its longer MA. The Composite is breaking out its longer MA, having formed a Bullish divergence with the price.

USD/CHF, D1

On the daily chart, the pair is trading on the middle MA of the Bollinger Bands. The price remains on the level with its moving averages that are horizontal. The RSI is testing from above its longer MA. The Composite is falling, having failed its longer MA.

Key levels

Support levels: 0.9900 (local lows), 0.9850 (local lows), 0.9810 (July lows).

Resistance levels: 0.9985 (local highs), 1.0015 (June highs), 1.0025 (local highs). 

Trading tips

The price is testing the lower border of its ascending channel. There is a chance of an upward correction.

Long positions can be opened from current prices with targets at 0.9985, 1.0015, 1.0025 and stop-loss at 0.9900. Validity – 3-5 days.

Short positions can be opened from the level of 0.9900 with targets at 0.9850, 0.9810 and stop-loss at 0.9930. Validity – 3-5 days.

Scenario

  • Timeframe

    Weekly

  • Recommendation

    BUY

  • Entry Point

    0.9928

  • Take Profit

    0.9985, 1.0015, 1.0025

  • Stop Loss

    0.9900

  • Key Levels

    0.9810, 0.9850, 0.9900, 0.9985, 1.0015, 1.0025

Alternative scenario

  • Timeframe

    Weekly

  • Recommendation

    SELL STOP

  • Entry Point

    0.9900

  • Take Profit

    0.9850, 0.9810

  • Stop Loss

    0.9930

  • Key Levels

    0.9810, 0.9850, 0.9900, 0.9985, 1.0015, 1.0025