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USD/CHF: TECHNICAL ANALYSIS 22.10.2019

Current trend

The USD/CHF pair begins today’s trading with slight bullish bias amid the correction.
The price is approaching a strong resistance in the region of 0.98700, which coincided with the middle line of Bollinger Bands. There is a chance of an upward rebound, while its breakout would allow the growth to continue to the area of 0.98877 level. This mark will be a key level for the buyers is short term period. The breakout of this level will be a signal for upward trend formation.
Alternative scenario.
If USD/CHF cannot consolidate above the level of 0.98700, the downward movement restoration and retest of the support level 0.98389 are possible.
One may speak about downward trend continuation after the price consolidates below the support level of 0.98389. In this case, the next targets of sellers will be the level of 0.98267-0.97961.
Technical indicators reflect the maintenance of the upward correction potential. MACD volumes are decreasing in the negative zone. Stochastic is pointed upwards. Bollinger Bands are converging on the background of bullish momentum.

Support and resistance

Support levels: 0.98572, 0.98389, 0.98267, 0.97961.
Resistance levels: 0.98700, 0.98877, 0.99000.

Trading recommendations

Short positions can be opened below the level of 0.98572 with the target at around 0.98389 and stop-loss at 0.98673.
Long positions can be opened above the level of 0.98700 with the target at around 0.98877-0.99000 and stop-loss at 0.98600.

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