By Yan Petters – The USD/CHF pair is testing its first support level for today – at the 1.0640 price. As several technical indicators suggest that the pair is likely to drop today, trader should pay attention to the three significant support levels that might be expected today.
• The chart below is the 4-hours USD/CHF chart by ForexYard.
• The technical indicators used are the Bollinger Bands, the Slow Stochastic, the MACD/OsMA and the Relative Strength Index (RSI).
• The Slow Stochastic is located under the 20 line at the moment – indicating that the bearish momentum has more steam in it.
• The MACD continues with the bearish channel, further strengthening the notion that a drop is likely to be expected.
• The RSI has failed to reach above the ‘over-sold’ zone, which means that a bullish correction is not likely to take place soon.
• The USD/CHF pair is currently testing the 1.0640 level. If it will manage to breach this level, it has potential to reach to the 1.0600 level – and then to the 1.0500.
Forex Market Analysis provided by Forex Yard.
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