After opening with a market gap of almost 60 pips, USD/CHF is currently reacting to the rise and is about to break the line 4/8 (blue line), which was an important support zone by last Friday. The previous resistance area at 0.9290 that the price should break in order to move in search of new resistance at 0.9308 and 0.9338
But if it is not succeed in overcoming these levels, the dollar may continue to lose ground taking it to 0.9155, which we consider unlikely.
We will not see any major data from Roger Federer's home land until the second half of the week, when it will print on its ZEW economic expectations Sunday at 9:00 a.m. GMT and the trade balance and the big SNB monetary policy decision on Thursday at 6:00 a.m. and 7:30 a.m. GMT respectively.
The 4 hour chart shows USD/CHF is in oversold zone in this time frame, after its opening line exceeded -1/8 considered an extreme line of overrun. For this reason, we can enter short-term positions buying above 0.9247 with tight stop loss at 0.9216. When closing a full sail below this level, it would be breaking a trendline which would invalidate our recommendation to purchase entry.
In 1 hour charts note that USD/CHF is around 0.9235 which comes to the bottom line of its trend channel within four hours. On the other hand, though we also observed an internal channel downtrend, but the fact that in four hours notice that 0.9247 becomes a major support zone makes us think that the price will bounce from these levels, with the first target at the top line of its trend channel in 1-hour chart and as the second intermediate objective line of its broader trend channel in 4-hour chart.
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