USD/CHF: technical analysis 16.01.20
On the 4-hour chart, the instrument is correcting up from the lower line of the Bollinger Bands and testing the resistance 0.96436. This level can activate a downward rebound, while its breakout would allow the growth to continue to 0.96588 then 0.96741 level. According to Stochastic conditions, this scenario seems possible.
The downward rebound from 0.96436 could lead the price back to 0.96296 support. The breakdown of this level can trigger a pair’s fresh downside to new lows surrounding 0.96130.
Technical indicators maintain a sell signal, but the upward correction is possible in the short term.
Bollinger Bands are pointed downwards.
MACD is growing in the negative zone.
Stochastic has left the oversold area and is pointed upwards, reflecting the high possibility of upward movement formation.
Support and resistance
Support levels: 0.96283, 0.96130, 0.96000.
Resistance levels: 0.96436, 0.96588, 0.96741.
Short positions can be opened below the level of 0.96283 with the target at around 0.96130-0.96000 and stop-loss at 0.96377.
Long positions can be opened above the level of 0.96436 with the target at around 0.96588-0.96741 and stop-loss at 0.96334.