Swiss stocks climbed on Tuesday amid growing hopes of the European Central Bank’ action. Binary USD/CHF options successfully break below crucial support around 0.9655, which coincides with 61.8% Fibonacci retracement of the 0.9460 – 0.9970 growth. This break is signal for continuing the downside movement with first target 0.9550. On daily chart I see a head and shoulders formation with target at 0.9540. After Yesterday’s break of 0.9555 this formation looks good opportunity for binary traders to buy “put” option. The 14 EMA is currently crossing the 50 SMA and the price is below it which suggest for a start of negative trend. On upside, the strong resistance is expected at previous support around 0.9700. A break above it would return positive sentiment in currency pair.
In short term Binary USD/CHF receives strong resistance at the yesterday’s broken support 0.9655. For now currency pair is continuing his corrective pattern. Above this resistance the trend could switch to neutral. On four-hour chart corrective configuration is flag with target around 0.9575.
