USD/CHF: technical analysis 17.10.2019Published: 17 October 2019
On the 4-hour chart, the instrument is falling along the lower line of the Bollinger Bands. Now we can see a slight upward correction is forming, but the general downward trend is still maintained. If the "bulls" manage to raise the rate above the level of 0.99380, the correction can continue to the area of 0.99487-0.99522. There is a chance of an downwards rebound, while its breakout will accelarate the pair towards 0.99640 resistance line. The level of 0.99640 will be a key level for the buyers.
The downward trend will be restored after the price is set below the level of 0.99279. In this case, the next targets of sellers will be the level of 0.99182-0.99030.
Technical indicators mostly keep a sell signal but the upward correction is possible in the short term. Bollinger Bands are diverging on the background of bearish momentum. MACD histogram is in the negative zone keeping a signal for the opening of sell positions. Stochastic is in the oversold zone and is directed upwards, signaling the development of an upward correction.
Support and resistance
Support levels: 0.99335, 0.99182, 0.99030.
Resistance levels: 0.99487, 0.99640, 0.99792.
Short positions can be opened below the level of 0.99279 with the target at around 0.99182-0.99030 and stop-loss at 0.99331.
Long positions can be opened above the level of 0.99380 with the target at around 0.99640 and stop-loss at 0.99293.