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USD/CHF: technical analysis 19.12.19

Current trend

On the 4-hour chart, the instrument keeps a moderate negative dynamic. Now the price is testing the support level of 0.97961, which hinders the fall of quotes. If the sellers manage to decline the rate below this level, the decline can continue to the area of 0.97809-0.97656.

Alternative scenario

The rebound from 0.97961 and pullback above 0.98154 (which corresponds to the middle line of Bollinger Bands) will be a signal for upward trend formation. In this case, the next targets of buyers will be the level of 0.98267. The level of 0.98267 can prevent the instrument from growing, as the possibility of the reverse of the price is high there. Meanwhile, the decisive break of 0.98267 will give a prospect of growth to the area of 0.98419 resistance.

Technical indicators

Technical indicators maintain a sell signal.

Bollinger Bands are pointed downwards.

MACD is growing in the negative zone.

Stochastic’s lines are pointed downwards and are reaching the oversold area.

Support and resistance

Support levels: 0.97961, 0.97809, 0.97656, 0.97504.
Resistance levels: 0.98114, 0.98267, 0.98419.

Trading recommendations

Short positions can be opened below the level of 0.97961 with the target at around 0.97809-0.97656 and stop-loss at 0.98062.
Long positions can be opened above the level of 0.98154 with the target at around 0.98267-0.98419 and stop-loss at 0.98065.

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