Influenced by the positive divergence on Stochastic, the USD/CHF pair has soared forming a clear bullish engulfing candlestick pattern as seen on the provided daily chart. Furthermore, RVI 14 succeeded in overlapping positively; thus, 61.8% Fibonacci retracement level has proved its solidity. Focus now is on 0.9080 and 0.9105 and a break above these levels will bring panic buying interests. Below 0.8900 will negate and give us a rational reason for concern.
The trading range for today is among key support at 0.8800 and key resistance at 0.9230.
The general trend over short term basis is to the upsidetargeting 0.9950 as far as areas of 0.8850 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, buying the pair around 0.9010 targeting 0.9200 and stop loss below 0.8900 might be appropriate.|