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USD/CHF: technical analysis 06.12.2019

Current trend

USD/CHF is consolidating around the 0.98700 support after a significant decline over the last three days.
The instrument has the potential to further decline, but the upward correction is not excluded. If the sellers manage to decline the rate below the level of 0.98661, the downward movement can continue to the area of 0.98572-0.98543. The level of 0.98543 can activate an upward rebound, while its breakdown would allow the fall to continue to the area of 0.98267.

Alternative scenario

The pullback above the middle line of Bollinger Bands (0.98820-0.98877) will be a signal for upward trend resumption and give a prospect of growth to the level of 0.98988-0.99182.
Technical indicators mostly keep a sell signal, but the upward correction is possible in the short term.
Bollinger Bands are pointed downwards.
Stochastic is in the oversold zone and is pointed upwards, reflecting the high possibility of upward movement formation.
MACD stabilized in the negative zone.

Support and resistance

Support levels: 0.98572, 0.98267, 0.97961.
Resistance levels: 0.98877, 0.99182, 0.99487.

Trading recommendations

Short positions can be opened below the level of 0.98572 with the target at around 0.98267 and stop-loss at 0.98673.
Long positions can be opened above the level of 0.98877 with the target at around 0.99182 and stop-loss at 0.98775.

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