Overview:
- The USD/CHF pair broke resistance, which turned into strong support at the level of 0.9577 yesterday. The level of 0.9577 coincides with a golden ratio (38.2% of Fibonacci), which is expected to act as major support today. The Relative Strength Index (RSI) is considered overbought because it is above 30. This would suggest a bullish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs. So, the market is likely to show signs of a bullish trend around the spot of 0.9577. In other words, buy orders are recommended above the spot of 0.9577 or 0.9600 with the first target at the level of 0.9662, and continue towards 0.9719 (the weekly resistance 1). On the other hand, if the USD/CHF pair fails to break through the resistance level of 0.9719 today, the market will decline further to 0.9577 in order to test it again. The pair is expected to drop lower towards at least 0.9577 with a view to test the weekly pivot point. Also, it should be noted that the weekly pivot point will act as minor support today. Accordingly, the pair is still in the uptrend from the area of 0.9577 and 0.9719. The USD/CHF pair is trading in a bullish trend from the last support line of 0.9577 towards the targets of 0.9662 and 0.9719.
