USD/CHF: technical analysis 09.10.2019
The USD/CHF pair begins today’s trading with slight bullish bias. If the current trend maintains the pair will reach the level of 0.99487 (Murray [6/8]), which coincided with the middle line of Bollinger Bands. The area of 0.99478-0.99544 can prevent the instrument from growing, as the possibility of the downward rebound is high there. Meanwhile pair’s sustained trading above the 0.99544 level will let the price to grow to the area of 0.99792 (Murray [7/8]).
Alternative scenario. If USD/CHF cannot consolidate above the level of 0.99544 during short term period, the downward movement restoration and retest of the support level 0.99182 (Murray [5/8])are possible. A significant decrease is possible after the breakdown of the level 0.99182. In this case, the next targets of sellers will be the level of 0.99043-0.98877 (Murray [4/8]).
The technical picture is mixed. Bollinger Bands are converging without any clear signal. MACD volumes are slowlt decreasing in the negative zone. Stochastic is pointed upwards, reflecting the possibility of the upward movement formation.
Support and resistance
Support levels: 0.99300, 0.99182, 0.99043, 0.98877.
Resistance levels: 0.99487, 0.99544, 0.99792.
Long positions can be opened above the level of 0.99487 with the target at around 0.99544-0.99792 and stop-loss 0.99385.
Short positions can be opened below the level of 0.99182 with the target at around 0.99043-0.98877 and stop-loss 0.99283.