FX.co ★ Technical analysis of USD/CHF for May 12, 2016

Overview:

• The USD/CHF pair has faced strong resistance at the 0.9735 level as support turned into resistance on April 27, 2016. Thus, the strong resistance has been already formed at 0.9735, and the pair is likely to approach it in order to test it again. However, if the pair fails to pass through the level of 0.9735, the market will indicate a bearish opportunity below the new strong resistance level at 0.9735 (the level of 0.9760 coincides with the double top. Moreover, the RSI starts signaling a downward trend, as the trend is still showing strength below the moving average (100). The market is indicating a bearish opportunity below 0.9735, so it will be good to sell at 0.9730 with the first target at 0.9651. It will also call for a downtrend in order to continue towards 0.9571. The daily strong support is seen at 0.9571. However, never forget about the stop loss: it should be set at 0.9766.