FX.co ★ Technical analysis of USD/CHF for January 31, 2017

Overview:

• The USD/CHF pair fell from the level of 0.9981 to the bottom at 0.9933 yesterday. Today, the USD/CHF pair faces strong support at the level of 0.9933 which has already been touched. The pair is likely to approach it in order to test it again and form a double bottom. Moreover, if the pair succeeds in passing through the level of 0.9933, the market will indicate a bearish opportunity below this level. A breakout of that target will move the pair further downwards to 0.9900. Today, we expect the USD/CHF pair to move between the levels of 0.9981 and 0.9933. Equally important, the RSI is still calling for a strong bearish market, and the current price is below the moving average (100) on the H1 time frame. Therefore, we recommend to sell below the resistance of 0.9957 targeting the level of 0.9900. Don't forget about the stop loss that should be set above the last bullish wave at the level of 1.0011.