FX.co ★ Technical analysis of USD/CHF for May 20, 2016

Overview:

• The USD/CHF pair is showing signs of strength following a breakout of the highest level of 0.9846.
• On the daily chart the level of 0.9846 coincides with 61.8% of Fibonacci, which is expected to act as a minor support today. Since the trend is above the 61.8% Fibonacci level, the market is still in an uptrend.
• But, major support is seen at the level of 0.6771.
• Furthermore, the trend is still showing strength above the moving average (100).
• Thus, the market is indicating a bullish opportunity above the mentioned support levels for that the bullish outlook remains the same as long as the 100 EMA is headed to the upside.
• Therefore, strong support will be found at the level of 0.9846 providing a clear signal to buy with a target seen at 0.9952.
• If the trend breaks the minor resistance at 0.9952, the pair will move upwards continuing the bullish trend development to the level 1.1018 in order to test the daily resistance 1.