USD/CHF ended 2016 with a sharp rally from below 0.96 to above 1.03. However, it has since retreated in January, back to trading around 1.00. USD/CHF Daily Chart 1/29(click to enlarge)Key Support:- As we can see in the daily chart, 0.9950-1.00 was a key resistance area for a large part of 2016.- Now it might act as support.- Also note that 50% fibonacci retracement is right around 0.9945.- If we anticipate a bit of an extension downwards, we can look at the 61.8% retracement level around 0.9850 as the next "level of defense".USD/CHF 4H Chart 1/29(click to enlarge)Trade Consideration; Reward to Risk Assessment:- With price already anchoring above 0.9960, we can start a position around 0.9980 with a stop at 0.9940 and a target of 1.01.- This conservative trade provides a reward to risk ratio of 3:1.- A more aggressive target of 1.02, which does not require the scenario to be bullish, yields a reward to risk ratio of a little more than 7:1.