Technical analysis of USD/CHF for June 21, 2016

Source: Forex Analysis

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Overview:

  • The USD/CHF pair broke support which turned to strong resistance at the level of 0.9639 yesterday. The level of 1.0120 coincides with the ratio of 38.2% of Fibonacci, which is expected to act as major resistance today. RSI is considered overbought because it is below 70. The RSI is still signaling that the trend is downward as it is still strong below the moving average (100). This suggests the pair will probably go down in coming hours. Accordingly, the market is likely to show signs of a bearish trend. In other words, sell orders are recommended below 0.9639 with the first target at the level of 0.9564. From this point, the pair is likely to begin a descending movement to the point of 0.9530 and further to the level of 0.9503. The level of 0.9503 will act as strong support and the double top is already seen at the point of 0.9443. On the other hand, if a breakout happens at the resistance level of 0.9639, then this scenario may become invalidated. In overall, we still prefer the bearish scenario.

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