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Technical analysis of USD/CHF for August 05, 2016

USDCHFH1.png

Overview

  • The USD/CHF didn't make significant movement yesterday. There are no changes in my technical outlook. The bias remains bearish in nearest term testing 0.9622 or lower. Immediate support is seen around 0.9622. A clear break below that area could lead price to neutral zone in nearest term testing 0.9572. In the last few days, the USD/CHF pair moved from its bottom at 0.9630 and continued to rise to the top of 0.9745. Today, on the one-hour chart, the current rise will remain within a framework of correction. In the H4 time frame, if the pair fails to pass through the level of 0.9786, the market will indicate a bearish opportunity below the strong resistance level of 0.9786 (level of 0.9786 coincides with the 61.8% of Fibonacci), which is expected to act as a major support today. Additionally, the RSI is still signaling that the trend is downward as it is still strong below the moving average (100). Since there is nothing new in this market, it is not bullish yet. Sell deals are recommended below the level of 0.9786 with the first target at 0.9684. If the trend breaks the support level of 0.9684, the pair is likely to move downwards continuing the development of a bearish trend to the level 0.9622 in order to test the daily support 2. On the other hand, if a breakout happens at the resistance level of 0.9786, then this scenario may become invalidated. But in overall, we still prefer the bearish scenario today.
1470302818_USDCHFH4.png

Overview:

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