On the one-hour chart, the USD/CHF pair is continuing in a bullish trend from the support levels of 0.9101 and 0.9159. This is shown to us as the current price is in a bullish channel.
This is further confirmed by the RSI indicator signaling that we are still in a bullish trending market. As the price is still above the moving average (100) since yesterday.
Immediate support level is seen at 0.9159 which coincides with a golden ratio (38.2% of Fibonacci).
Consequently, the first support is set at the level of 0.9159. So, the market is likely to show signs of a bullish trend around the spot of 0.9159/0.9177.
In other words, buy orders are recommended above major support (0.9159) with the first target at the level of 0.9219.
Furthermore, if the trend is able to break through the first resistance of 0.9219. We should see the pair climb towards the resistance levels of 0.9252 and 0.9281.
It would also be wise to consider where to place a stop loss; this should be set below the weekly support 1 of 0.9083.
Observation:
- Weekly support 1 sets at the price of 0.9083.
- How we found it?
Answer:
Use historic rates to determine future prices.
Determine support 1 and pivot point of the previous day.
- High : 0.9252
- Low : 0.9101
- Close: 0.9159
As we know :
- Pivot point = (High + Low + Close) / 3
- Support 1 = (2 x PP) - High
So,
- Pivot point = (High + Low + Close) / 3
- Pivot point = 0.9170
- Support 1 = (2 x PP) - High
- Support 1 = 0.9083
