US dollar quotes to the Swiss franc have since the beginning of 2017 drawn up a support base that has already been tested three times. After rebounding from April highs USD/CHF may be heading in that direction.
The support zone is set by 61.8% of Fibonacci abolition and the minima of January/February around 0.9860. Contact with this level has already guaranteed three times rebound up to 240 pips.
Looking at the chart below we can assume that we are dealing with consolidation, its upper limit is somewhat disturbed. Currently the zone of its closure is around 1.0100. Reflection from this level in April led to testing of the mentioned support zone – so there is a chance that in May that situation will be repeated. Especially that quotes start the week of re-testing parity level of 1.0000 from below. If Monday session closes below that level, the move towards 0.9860 will become more likely:
At this point, investors can use the 1.0000 test to open short positions, and then consider long at the bottom of the consolidation limit, aiming at its upper band.