On the daily chart we see that the USDCHF for a long time moved in a fairly large consolidation regularly testing the support area 0.9522 – 0.9542. Currently, the fourth time the market is testing the downtrend line, the defeat could open the way for further declines.

zrzut-ekranu-2016-10-07-o-11-30-37-1

Looking at the H4 chart we see that today in the morning we overcame significant resistance around 0.9813 levels as a result of which we were on highest level since September 1st this year. We are seeing the struggle between bears and bulls in this region. It should also be noted that the earlier downward correction ideally rejected local support 0.9733 coinciding with the momentum of 50% Fibonacci correction of previous increases. Persistent overcome the current zones could open the way for growth even in the vicinity of the level of 0.9883. However if the market in the near future will return below 0.9813, then on the way to further declines would stand the uptrend line running from the end of September.

usdchf-h4-1

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