Since forming a double bottom in May 2015, USD/CHF has been steadily rising producing higher highs and higher lows. The price is clearly moving within the ascending channel without any signs of a reversal down.

After breaking major resistance area (S1) near 0.9840, the price returned back and tested it, but this time the support was rejected. Applying Fibonacci to the last corrective wave down that tested the ascending channel, you can see that while R1 resistance was broken, R2 has not been tested.

Consider buying USD/CHF on corrective waves down targeting 261.8% Fibonacci retracement level area (1.0440). Stop loss should be placed well below the most recent low of December 14 (0.9780).

Support: 0.9840

Resistance: 1.0070, 1.0440