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.