Overview:
- The USD/CHF pair has faced strong resistances at the levels of 1.0001. Besides, it should be noted that the double top has become resistance this week. So, the strong resistance has already been formed at the level of 1.0001 and the pair is likely to try to approach it in order to test it again. However, if the pair fails to pass through the level of 1.0001, the market will indicate a bearish opportunity below the new strong resistance level of 1.0001. Moreover, the RSI starts signaling a downward trend because it is considered overbought. Hence, the trend will call for a bearish market as long as the level of 1.0001 is not breached. Thus, the market is indicating a bearish opportunity below 1.0001. For that, it will be good to sell at 1.0001 with the first target of 0.9904. It will also call for a downtrend in order to continue towards 0.9828. The daily strong support is seen at 0.9828. However, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss above the level of 1.0060.
- On bullish market:
- Therefore, the market indicates a bullish opportunity above the level of 1.0060 in the H4 chart. Also, if the trend is buoyant, then the currency pair strength will be defined as following: USD is in an uptrend and CHF is in a downtrend. Buy above the major resistance of 1.0060 with the target at 1.0135 in order to form a new double top.
The material has been provided by InstaForex Company – www.instaforex.com
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