Forecast:
Strong level (Resistance) will be formed at 0.9206 providing a clear signal for Sell deals with the target seen at the 0.9100 level. Stop loss is to be placed above 0.9255.
Strong level (Support) will be formed at 0.9095 providing a clear signal for Buy deals with the target seen at the 0.9190 level. Stop loss is to be placed below 0.9073.
Range: 111 pips (Weekly).
Overview:
USD/CHF: It is necessary to consider that the price is still located between points of 0.9180 and 0.9130, i.e. above the strong resistance level of 0.9206. The pair has already formed a strong resistance at this level of 0.9206 and is presently approaching the further testing. Therefore, the Swissie is expected to go downwards following the structure which does not look corrective, indicating the bearish opportunity below the 0.9206 level. Sell deals are recommended below 0.9206 with the first target seen at the 0.9155 level. Thus, the downtrend is likely to continue the bearish movement towards the 0.9100 level. Moreover, it is crucial that the price has probably formed a strong support at 0.9095. The saturation is likely to take place around 0.9100 (0.9095: the weekly support 1). Therefore, it is possible that the market will start showing the signs of bullish behaviour. In other words, Buy deals are recommended above 0.9095 with the first target seen at the 0.9170 level, and if the weekly support 1 (0.9206) is broken successfully, then the pair will go further to the 0.9255 level (R2: 0.9322). It should be noted that the resistance becomes a support after it is broken.
If you have any questions or requests, please feel free to contact me: mourad.elkeddani@analytics.instaforex.com.
