USD/CHF, D1

On the daily chart, the USD/CHF pair is actively testing 0.8977 (correction 23.6%), supported by the middle line of Bollinger bands but cannot break above it yet. If it consolidates above this level, the growth of the quotations through the downward fan will continue to 0.9060 (correction 38.2%, the upper line of Bollinger bands) and 0.9130 (correction 50.0%). Otherwise, the decline will resume towards 0.8840 (correction 0.0%).

Technical indicators point to the continuation of the downward trend: Bollinger bands are directed downwards, and the MACD histogram is stable in the negative zone.

USD/CHF, W1

On the weekly chart, the price resumed its decline and is now close to 0.8900 (correction 0.0%), the breakdown of which will allow the quotes to fall to 0.8820 (April lows). The key “bullish” level is the middle line of Bollinger bands around 0.9060, after the consolidation above it, the positive dynamics will reach 0.9175 (correction 23.6%) and 0.9343 (correction 38.2%).

Technical indicators do not give a single signal: Bollinger bands reverse downwards and MACD histogram stabilization in the negative zone indicate the continuation of the downward trend, however, attempts of Stochastic to reverse upwards near the oversold zone do not exclude corrective growth.

Support and resistance

Soon, the negative dynamics may continue to 0.8840 (0.0% correction, D1) and 0.8820 (April lows). If 0.8977 (correction 23.6%, D1) is tested upwards, the growth of the trading instrument will continue to 0.9060 (correction 38.2%, D1, the middle line of Bollinger Bands, W1) and 0.9130 (correction 50.0%).

Resistance levels: 0.8977, 0.9060, 0.9130.

Support levels: 0.8840, 0.8820.

Trading tips

Short positions may be opened from 0.8940 with the targets at 0.8840, 0.8820 and stop loss around 0.8980. Implementation period: 5–7 days.

Long positions may be opened above 0.8977 with the targets at 0.9060, 0.9130 and stop loss around 0.8920.