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Technical analysis of USD/CHF for August 02, 2016

USDCHFM30.png

USD/CHF is expected to trade on the upside as the bias remains bearish. The pair is consolidating on the downside below its key resistance at 0.9765, which should limit the upside potential. The 20-period and 50-period moving averages are flat.On the forex front, the U.S. dollar stabilized after Friday's plunge with the ICE. U.S. Dollar Index rebounding 0.2% to 95.71. Even though some technical rebound cannot be ruled out, its extent should be limited.

As long as 0.9765 holds on the upside, the pair is likely to return to its previous low at 0.9635. A break below this level would call for a further decline toward 0.9590.

Resistance levels: 0.9825, 0.9875, 0.9920

Support levels: 0.9635, 0.9590, 0.9535

The material has been provided by InstaForex Company - www.instaforex.com