USD/CHF: technical analysis 03.10.2019
The USD/CHF pair begins today’s trading with slight bullish bias due to correction. USDCHF bounced off the 0.99609 support but is yet to cross the 0.99812 resistance. The upward correction will be restored after the price is set above this level. In this case, the next targets of buyers will be the level of 0.99945, 1.00098. The area of 1.00098 seems a key level for the buyers in short term period. It can activate active sales of USD/CHF. If USD/CHF cannot consolidate above the level of 0.99812 during short term period, the downward movement restoration and retest of the level 0.99609 (the middle line of Bollinger Bands) are possible. The breakdown of this level will let the price fall to the area of 0.99487 (Murray [6/8])-0.99295 support zone.
The technical picture is mixed. Bollinger Bands are converging without any clear signal. MACD volumes are slowly increasing in the positive zone. Stochastic is pointed downwards, reflecting the possibility of the downward movement formation.
Support and resistance
Support levels: 0.99609, 0.99487, 0.99295.
Resistance levels: 0.99792, 0.99945, 1.00098.
Short positions can be opened below the level of 0.99609 with the target at around 0.99487-0.99295 and stop-loss 0.99713.
Long positions can be opened above the level of 0.99812, with the target at around 0.99945-1.00098 and stop-loss 0.99716.