USDCHF: With the pair closing higher following its price halt the past week, the risk is for more gains to occur. However, the situation on the daily chart is different as its mentioned rally has printed a reversal candle (shooting star) suggesting it may be tough for USDCHF strengthen further for now. If it cannot go up we think it should head lower on correction. Support comes in at the 0.8768 level where a violation will turn focus to the 0.8698 level. Further down, support is located at the 0.8600 level and then the 0.8568 level followed by the 0.8500 level. On the upside, resistance resides at the 0.8868 level. Further out, resistance resides at the 0.8895 level where a break will clear the way for a run at the 0.8950 level. On a break of here, resistance stands at the 0.9050/81 levels. All in all, the pair remains biased to the downside medium term though attempting a recovery.
Article by www.fxtechstrategy.com
