Daily chart
The USD/CHF pair continued its uptrend yesterday and left the 0.9050 area where there is its weekly pivot. The day continued with that trend even though the data from Swiss were not very negative.
The Purchasing Managers' Index (PMI) gave up its September gains and dropped by 1.1 points in October. At 54.2 points, it nevertheless closed in the growth zone for the seventh month in a row.
In this way, industrial activity has continued its bumpy recovery since spring 2013, with each rise in the index followed by a decline the next month. In October, the decline was due to the drop in the "output" and "backlog of orders" subindices."
4-hour chart
The 4-hour chart shows that the next resistance of the USD/CHF pair is at 0.9155 and at this level there is a line 3/8 (green line) Murrey. It comes to be the bottom line of its range quote. The pair should have a correction to the zone anyway because at current levels there are two lines of the trend channel which also constitute a major resistance area to consider.
1-hour chart
The 1-hour chart shows the USD/CHF pair trades at this time over 200-day moving average and is finding its second daily resistance at 0.9130. The next target if this trend is maintained at 0.9185 is located at R-3 daily; data on the Manufacturing Index from the United States is still expected and this could move the market and bring the pair to these levels of 0.9185. However, there is also the possibility of a correction and the next support is at 0.9100.
So our suggestion for today based on our analysis of the three graphs is to wait a retraction below 0.9100 in order to find purchasing areas that conform to a proper risk management, since at this time the risk benefit is very uneven.
If you have any questions or suggestions, please contact:
Email:antonio.inga@analytics.instaforex.com
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