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USD/CHF: technical analysis 03.01.20

Current trend

The instrument has tested the support level of 0.96873 and was slightly corrected upwards, but the downward trend maintains. Assuming the pair’s ability to cross 0.96873 level, the mark of 0.96741 and the 0.96588 can be targeted if holding sell positions. Should prices continue slipping under 0.96588, the level 0.96436 (3-month low) might try activating an upward reverse.

Alternative scenario

The pullback above the 0.97155 level will give a prospect of growth to the 0.97351 resistance. There is a chance of a downward rebound, while its breakout would allow the growth to continue to 0.97656 level. This mark seems a key bullish target for the short term period.

Technical indicators

Technical indicators maintain a sell signal.

Bollinger Bands are diverging on the background of bearish momentum.

MACD volumes are slowly decreasing in the negative zone, but still keeping a sell signal.

Stochastic has left the overbought area and is pointed downwards, reflecting the high possibility of the downward movement formation.

Support and resistance

Support levels: 0.96873, 0.96741, 0.96436.
Resistance levels: 0.97046, 0.97351, 0.97656.

Trading recommendations

Short positions can be opened below the level of 0.96873 with the target at around 0.96741-0.96588 and stop-loss at 0.96968.
Long positions can be opened above the level of 0.97155 with the target at around 0.97351-0.97500 and stop-loss at 0.97040.

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