FX.co ★ Technical analysis of USD/CHF for May 10, 2016

Overview:

• The USD/CHF pair is showing signs of strength following a breakout of the highest level of 0.9700. On the H1 chart, the level of 0.9660 coincides with 61.8% of Fibonacci, which is expected to act as major support today. Since the trend is above the 50% Fibonacci level, the market is still in an uptrend. But, minor support is seen at the level of 0.9700. Furthermore, the trend is still showing strength above the moving average (100). Hence, the market is indicating a bullish opportunity above the above-mentioned support levels, for that a bullish outlook remains the same as long as the 100 EMA is headed to the upside. Therefore, strong support will be found at the level of 0.9660 providing a clear signal to buy with a target seen at 0.9753. If the trend breaks the minor resistance at 0.9753, the pair will move upwards continuing a bullish trend development to the level 0.9795 in order to test the double top. Overall, we are still looking for a bullish market today. However, stop loss should be placed below the support of 0.9660