Pair: USD/CHF (dollar swissy).
Overview:
It is necessary to consider that the price is still located between the points 0.9430 and 0.9485, i.e. above the strong support level 0.9423 (50% of Fibonacci retracement levels in the H1 chart). These levels correspond to 50% and 61.8% of Fibonacci retracement levels in the H1 chart. The pair has already formed a strong resistance at the level of 0.9530 and is now approaching it for further testing. Therefore, the swissy is expected to go downwards following the non-corrective structure and indicating the bearish opportunity below the 0.9530 level. Sell deals are recommended below 0.9530 with the first target seen at the 0.9450 level. Thus, downtrend is likely to begin continuing the bearish movement towards the 0.9420 level. Furthermore, it is also important that the price has probably formed a strong support at 0.9420 (0.9423: 50% of Fibonacci retracement levels in the H1 chart). The saturation is like to take place around 0.9420. Therefore, it is possible that the market will start showing the signs of a bullish behaviour. In other words, buy deals are recommended above 0.9420 with the first target seen at the 0.9485 level and futher at the 0.9525 level.
Forecast:
At 0.9420 a strong level will be formed, providing a clear signal for buy deals with the target seen at the 0.9500 level. Stop loss is to be placed below 0.9375.
If you have any questions or requests, please feel free to contact me: mourad.elkeddani@analytics.instaforex.com.
