All our targets which we predicted in Yesterday’s analysis has been hit. USD/CHF still expected to continue its upside movement. Although the pair posted a pullback, a support base at 0.9700 has formed and has allowed for a temporary stabilization. Even though a continuation of consolidation cannot be ruled out, its extent should be limited.
The sentiment was also boosted by the U.S. Commerce Department’s report that durable goods orders increased 1.7% on month in August, exceeding +0.9% expected.The proposed tax overhaul offers to lower corporate income tax rates, cut taxes for small businesses, reduce the top income tax rate for individuals and scrap some widely used tax breaks.
To sum up, as long as 0.9700 is not broken, a further rebound to 0.9770 and even to 0.9790 seems more likely to occur.
Chart Explanation: The black line shows the pivot point. The present price above the pivot point indicates a bullish position, and the price below the pivot points indicates a short position. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.
Strategy: BUY, Stop Loss: 0.9700, Take Profit: 0.9770
Resistance levels: 0.9770, 0.9790, and 0.9835
Support levels: 0.9675, 0.9650, and 0.9610