FX.co ★ Technical analysis of USD/CHF for February 11, 2016

Overview:

• As expected The USD/CHF pair continues to move downwards from the zone of 0.9792 and 0.9738. Yesterday, the pair dropped from the level of 0.9792 to 0.9666 which coincides with a ratio of 38.2% Fibonacci on the daily chart. Today, resistance is seen at the levels of 0.9738 and 0.9792. So, we expect the price to set below the strong resistance at the levels of 0.9738 and 0.9792; because the price is in a bearish channel now. The RSI starts signaling a downward trend. Consequently, the market is likely to show signs of a bearish trend. So, it will be good to sell below the level of 0.9738 with the first target at 0.9600 and further to 0.6510 in order to test the daily support. If the USD/CHF pair is able to break out the daily support at 0.6510, the market will decline further to 0.9384 to approach support 2 today. However, the price spot of 0.9792 and 0.9738 remains a significant resistance zone. Thus, the trend is still bearish as long as the level of 0.9792 is not breached.