After testing a low at 0.9115 on June 18, USD/CHF started to move higher heading towards higher highs and higher
lows. While the rate was growing, it broke above the ascending
channel suggesting further strength.
The Fibonacci levels applied to the
channel breakout point show no resistance has been tested while
S2 (0.9542) was rejected, followed by a bounce from S1 (0.9607)
last Friday. USD/CHF has been moving in cycles, according to which a
new up cycle begun on July 24 after S1 had been rejected.
All facts point to the continuation of
an uptrend and considering buying
USD/CHF today at the current rate, while it is near S1. The 0% Fibonacci is located at 0.9888 (R3) that should be
used for taking profit. On the other hand, only a daily close below
0.9524 tested on July 23 would immediately change the direction of
0.9673, 0.9755, 0.9888
The material has been provided by InstaForex Company – www.instaforex.com